I've shown a series of horizontal price levels on each chart.:
- yellow = highest price reached this year
- white = highest close on the left shoulder of a potential H&S formation for this timeframe
- green = high of the last green candle formed after the recent decline (and also the prior 3-day candle)
- red = lowest close and neckline of a potential H&S formation (although the YM formation is a bit sloppy as recent price doesn't touch this level)
BTW, the moving averages shown are:
white broken = 21ema
red = 50sma
The merging of these two moving averages may signal either further range trading or a significant breakout in one direction or the other in the coming days.
This is a formation that I'll be following with interest every 3 days.
Since it seems that everyone is interested in the Greek debt situation, I'm also showing a 3-days/candle chart of the EUR/USD below. Price closed today (on Day 3 of the last red candle) once again in between recent support and resistance levels and is approaching the apex of a triangle whose formation began in early January of this year. Is this a bull flag in the making? We'll see where price wanders next. BTW, the white descending trendline shown on the chart begins at the highest high reached in July of 2008...if price holds above this level, I would expect price to potentially make a new high sometime this year and possibly reach the highs of November 2009 (approximately 1.514)...based purely on the technicals...what happens politically is another question.
