Eur Update Part 2

I compared monthly Euro arithmetic versus log-scale charts. On arithmetic scale, the pair is forming a Falling Wedge while on log scale it does indeed look to be within Converging Channel. Anyhow, thank you Edwards & Magee for suggesting log scale charts. The difference between the top downtrendline of the Wedge and the Channel is slightly over 200 pips. However, there is no difference at the bottom line. Compare the charts for yourself.

A note on omnipresent triangles:

In ¼ of the cases symmetrical triangles serve as reversals and come at the end of a major trend. Such reversal patterns form over several months as in the Euro chart above which took 18 months. Also note how clear-cut the pattern was.  Therefore use triangles on daily charts (check my NZDUSD post from Feb 15) only for short-term plays.

Finally, on the importance of rate differential as an additional analysis tool in FX world. The chart below tells it all

Good luck trading.

P.S. I am not into such things but I read last w/end was a full moon and the suggestion is to ignore patterns during full moon as they are usually invalidated. Does it mean Euro breakout from daily falling wedge is a head fake? Time will show.