EUR/USD Technicals

The EUR/USD is actually at a very explosive area right now, being this has so much bearing on the market, I thought I'd show you. I feel confident of where it will end up, but in the VERY near term (like this afternoon) we could see a couple of different scenarios play out because of the technical pattern.

 Here's the real pattern that will be explosive near term, a bullish ascending triangle which should follow an uptrend, this one does. The Technical implication is an upside breakout, the real world implication is usually  failed upside breakout followed by a downside reversal as trader are easy to predict and therefore manipulate, but they want confirmation (the breakout) before they'll jump. The can open up a lot of avenue from selling in to strength and demand to just having a failed move that lights the snowball effect on a reversal, but this is very easily seen and I believe, purposefully constructed.

5 min EUR/USD chart.

 The same chart with the pre-requisite uptrend that must precede an ascending triangle to make it a valid consolidation/CONTINUATION pattern, Continuation is the key word as that is what technical traders expect and why it makes it so easy to manipulate a pattern like this and set traders up.

EUR/USD 5 min-for scale I added a vertical green arrow showing the start of FX trade yesterday.

 Looking at 10 min Bollinger bands on the Euro ETF, FXE, you can see the triangle constructed mostly during market hours and it's pinching the bands indicating a highly directional move can take place any minute.

 The 1 min EUR/USD chart shows clearly where positive and negative divergences have been put in to form a near perfect ascending triangle, this is why I don't think it's an accident or coincidental.

 The Euro Futures 1 min chart is nearly in perfect sync since the triangle was constructed and through it.

 The 5 min chart isn't so optimistic

The US Dollar Index is looking optimistic, it trades opposite the Euro and has a triangle , perfect volume for the pattern.

Keep an eye out for the pair, it should move trade and I have little doubt however the initial move/s go, it should end lower taking the market with it.