I find it useful to look at the big picture once in a while. In technical analysis terms that usually means inspection of weekly and/or monthly charts. However, I rarely get to see analysis of "ultra-high" timeframe charts, so I though I'd attempt do it myself.
A yearly and a quarterly EUR/USD charts are displayed below. Both are covering the same period, from 1973* to 2015. I will be focusing on the quarterly chart because of its finer detail and inclusion of additional technical tools.
* You may be wondering how is this even possible because Euro didn't exist before 1999. That's true, but the preparations for a single currency union started well before that. In 1979, the ECU (European Currency Unit) was created as an artificial currency which was basically a composite index of national currencies in the European Monetary System (EMS). I suspect that the data before 1979 is calculated using the same index.
Yearly chart:
Quarterly chart:
First feature that really stands out is the ascending channel. The usual practice is that a channel bottom (trendline) needs to be defined first, by a low and a higher low, before a parallel channel top (channel-line) could be drawn. In this case,…
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