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Forex pairs in this Article » EUR/USD (Barcelona) - Goncalo Moreira CMT, FXStreet Technical Analyst notes that EUR/USD remains bullish on the 3-box Point and Figure chart.

Key Quotes

“The 1.2950 downside target is now validated despite of the recent upward trajectory in the EUR/USD. Validation came with a dip the 1.35 figure with a so-called double-bottom breakout.”

“A bullish objective line (thick green) and two internal lines confirm the strength of the prevailing trend is still intact under a 30 pip 3-box reversal perspective. As such, the 1.4840 active target mentioned last week is still operative.”

“Enlarging the box size to 30 pip and switching from the 60 minute close to a daily close gives similar unambiguous signals. To obtain more detail of the price action, vital for understanding the supply and demand forces involved, the below 1-box chart can be used.”

“Here, a subjective support line has been broken on a double-bottom signal allowing for a horizontal count of 1.3360. Interestingly, this target is coincident with a 200-SMA on a conventional bar chart. Another difference to those charts is how the 1.38 appears to firmly cap the top side of the chart, thus conditioning what has happened since those highs.”
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