Have you noticed that EUR/USD has been moving within a recurrent pattern throughout the last two years? It seems like EUR/USD moves in 1000-pip blocks, then consolidates for three or four months and finally it pushes up another 1000-pip run before consolidating again.
Please pull your EUR/USD weekly chart so you can follow along with me: in mid-2006 price flapped sideways for few months in the 1.2xxx whereabouts. Then, in fall 2006, it popped the range and ran up into the 1.3xxx where it ranged sideways once again in mid 2007 for another 3 or 4 months. Fast forward to fall 2007 and… pop-it-goes into the 1.40xx, where once again it ranged sideways for another 3 or 4 months in late 2007/early 2008.
The last run-up took place in spring 2008 when price rocketed from 1.5000 to 1.6000, and ever since we’ve been ranging sideways for… bingo! 3 or 4 months!
What am I getting down to? well, it seems to me that EUR/USD has been following a repetitive “move-congestion-move” pattern throughout the last two years, and as of lately we’ve been toying around the 1.6000 barrier after having bounced around the 1.50′ies for quite a while… I wonder: is EUR/USD ready for another 1000-pip run to 1.7000 soon?
Screenshot attached below:
-HECTOR-
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