EUR/USD dips below triangle consolidation
James Chen April 9, 2015 7:32 PM
<p>EUR/USD (daily chart shown below) has dipped below a choppy triangle pattern consolidation that has been in place since the new 12-year low below 1.0500 […]</p>
EUR/USD (daily chart shown below) has dipped below a choppy triangle pattern consolidation that has been in place since the new 12-year low below 1.0500 was hit in mid-March.
Since that low of 1.0461 was established just under a month ago, price action has fluctuated in a relatively wide-ranging triangle pattern, but has managed to stay below both the key 1.1100 resistance level and the 50-day moving average.
The currency pair has spent the current week dropping sharply from its 50-day moving average and, as of Thursday morning, has tentatively dipped below the noted triangle pattern.
Currently, EUR/USD is trading under the key 1.0800 level and continues to be strongly entrenched within a bearish trend that has been in place for the past 11 months, since the May 2014 high near 1.4000.
The tentative triangle breakdown could prompt an imminent return to the currency pair’s major downside target of 1.0500. Further to the downside, any significant price move below 1.0500 should continue the entrenched downtrend, potentially targeting the 1.0200 support level as the next bearish objective.
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