Forex Trading, EUR ready to breakout?

by Joe Oliver, Forex Trading-Pips

Forex Trading: Euro currency has been trading in weekly squeeze for the past eight weeks and daily squeeze for the past three. Squeeze indicates contracting volatility and typically precedes a breakout move. A close above 1.4537 should  see decent upside gains for the Euro.

Forex Trading, EUR daily bars

Forex Trading, EUR daily bars

 

 

 

 

 

 

 

A breakout in EUR would coincide with a break down in the US$ Index, which is also trading in weekly squeeze. US$ Index has just completed a bear flag formation indicating a test of the May 2011 lows.

Forex Trading, US$ Index weekly bars

Forex Trading, US$ Index weekly bars