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.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.