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EURUSD : Consolidating ahead of US Producer Price Index

EURUSD : 4 Hour Chart

Today EURUSD seems like consolidating within a symmetrical triangle on the 4 hour chart which suggests that the pair might either surge breaking the resistance trend line or plunge breaking the support trend line. Also seems like 100 SMA is acting as a resistance for the pair preventing it to above it. There is a support at 1.3361 which the pair is currently testing. Although the pair may move either way up or down but I am biased towards the downside. As the 100 day SMA might prevent it to surge.

EURUSD : Daily Chart

Let’s have a look at the daily chart, the pair is following a downward channel trend and currently near the support trend line. So according to the trend there are chances that the pair may surge until it find resistance from the resistance trend line. The 100 day SMA is again signaling that the pair will continue to follow the downtrend. Now there must be some reason for EURUSD to move up and that reason could be US Producer Price Index Data which if misses the economist’s expectations might provide support to EUR and help it in surging. However if the pair continues to decline the immediate key support would be at 1.3291 which will prevent the pair in falling further.