What is the current trend of EURUSD? How to define a trend?

Finding the right direction: EURUSD

The primary object of any technical analysis is to find out the current trend of any scrip or currency pair. Price action tools and technics are great help to find out the direction.

Lets us break down the chart of EURUSD in to multiple time frames to help us to get our assumption.

Monthly chart of EURUSD

As you can see from the chart, even though the entire move is downward, the last 5 months EURUSD is travelling north. But you must be aware that any counter move to major trend can be opposite or parallel. It means, in long term down trend, any pull back can be an uprend or a parallel/consolidation move towards the upper trendline. Anyways, here we can assume that long term trend is clearly UP.

Lets move to Weekly chart to have zoomed in view.

Weekly chart

It is clearly shows a strong up trend. It can continue to end of October 2017 or early november 2017 to reach the major trend resistance. Moving to daily/Hourly chart.

Daily Chart of EURUSD

Daily chart tells you that , it is in a consolidation period. Means, after a high rally it is going sideways. Most probably it will continue a parallel path or come down to trendline support.

So When we have to enter into EURUSD if you are not a day trader. Let me go through 4H chart also.

4H chart of EURUSD

In 4H chart, you can see that price is forming a triangular pattern. What you have to do is to wait for breakout from this triangle. Since daily chart says it is in consolidation period, both UP or Down breakout will not long last and can come back to parallel channel.

So wait for the breakout for a quick entry and exit with profit. Quick does not mean minutes or hours. It can be multiple days.

Watch LIVE chart for results.

Possible moves in EURUSD by infra204 on TradingView.com

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