Monday, 15 December 2014
EUR/USD converging parabolas
Click to enlarge image.
Joining the graph bottoms gives a neat parabolic shape, indicating that the Euro downtrend against the US Dollar is gradually coming to an end. This idea will be strengthened if the coming week's downswing bounces off the parabola.
Joining the tops gives another parabolic shape, but not entirely parallel with the Supporting parabola. In fact, the two parabolas are converging. Obviously, either the Resistance Line (the top parabola) or the Support Line (the bottoms parabola), must be breached in the coming weeks.
I expect the downtrend to continue for a few more months due to the downward pressures on the Euro against the Dollar. My confidence in this prediction will be boosted if the Supporting parabola is breached.