As can be seen, the big drop, which started on Aug 13th, became the beginning of the pennant pattern. Before that, the price was in a slight downward trend. As we know, the pennant is a breakout signal, and usually, the breakout direction is the same as the previous trend. So, will the price break out this pennant on the EURUSD price line?
For now, we can see only one wave on the pennant, so obviously, it has not finished yet. But we still have some hints. For a pennant, the range of waves usually gets smaller and smaller; and we can see from the Standard Deviation that the fluctuation is calming down. This result can also be seen from MACD; the MACD is moving in a small range now. Ichimoku is getting thin again; Now it stops moving around and stays here.
The pennant has not finished yet. So we would stay easy, keep our eyes on indicators and patterns, and be ready for the breakout.
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