Desire to Rally: EURO

EUR/USD H4 CHART, source:forexfactory.com

EUR/USD H1 CHART, source: forexfactory.com

EUR/USD monthly chart, source:forexfactory.com

Euro plunged against US Dollar about one big on Thursday, and it seems that the announcement of US unemployment claims have made it.

The US unemployment claims recorded 293,000 which was worse than expected of 279,000. The previous gauge was 283 thousands.

This index has made market participants watch the global economy worse and the desire for the safety asset higher, I think.

And the oil price which was in the downward rallied now.

We need to watch the monthly chart of EUR/USD pair closely. The chart has showed that the price of Euro against USD has been lowered and the peaks have lowered gradually since 2008. But from the last year, the price attempted to rebound making the double-bottoms pattern.

Though Euro has fallen to rally last year, it is making the rally pattern. It takes time to complete the rally pattern in the monthly  chart, and it has the possibility of the pattern which drives to falling. But the participants' desire of the rally is shown on the chart, and the pressure gauge of the it becomes higher.

In 4-hour chart, the price made the double-bottoms pattern and rallied but plunged again on Thursday breaking down the long trend line. It seems that the price is in the chaos band in short terms.