(MENAFN- DailyFX) EUR/USD Technical Strategy: Flat Euro carving out bearish Triangle chart pattern above 1.13 figure Break lower to expose November low, heavy resistance below 1.15 Waiting for daily close breakout confirmation for EUR/USD trade with our free guide!
The Euro looks to have carved out a Triangle consolidation pattern above the 1.13 figure against the US Dollar . The congestive setup is typically followed by continuation of the dominant trend preceding it, which carries bearish implications in this scenario.
From here, a daily close below Triangle floor support at 1.1321 broadly opens the door for a decline to test the November 12 swing bottom at 1.1216. Alternatively, a push above the pattern's upper boundary at 1.1434 targets congestion area resistance in the 1.1456-81 zone.
While positioning suggests that the may soon resume, confirmation is absent. Furthermore, the inherently narrowing Triangle structure makes for progressively diminishing risk/reward appeal. With that in mind, waiting for a confirmed breakout to take a trade seems prudent.
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and have your questions answered --- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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