VIDEO ANALYSIS OF EURO USD
I had anticipated that a pullback was going to take place on this pair as it had reached the Breakout Equivalent of the Pennant.
As can be seen in the graph below, this pullback has now started with a few bullish candles.
This Breakout Equivalent is something you will see across the market. All Consolidations break towards these targets before either pulling back to start an opposing trend or pausing before resuming the current trend.
In the case of the EURO USD, given the predominant downtrend, we are likely to see another bearish signal that signals continued gains for the USD in the weeks ahead.
This Breakout Equivalent is a key aspect when it comes to trading Consolidation Breakouts. They are an excellent way of setting our targets ahead of pullbacks.