EURUSD has been going through some volatility in the recent period. It triggered a buy signal which was followed by a sudden cancellation and even more than that, was substituted by a sell signal. The last time we discussed the currency pair was on November 28 when we took a bearish stance on its movements as the false pattern suggested taking an opposite stance. Furthermore, as the price was back below the psychological support at 1.13 our opinions were reinforced. We expected the instrument to continue its decline in the following days.
Our prediction didn’t turn out to be exactly right as the price experienced a gain soon after. The price also managed to break the upper line of a symmetric triangle pattern yesterday following the upswing in price. More than that, it also managed to break the horizontal support shown in yellow on the graph above. Surprisingly, the price soon reversed itself and proved that the breakout highlighted in orange was simply a false one. This has triggered a sell signal as we expect the price to decline. Another fact supports the bearish sentiment. The price, on its way down, broke a dynamic support shown in green. With such momentum, the price should also reach the lower line of the triangle formation very soon.