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EURUSD : Consolidating Within Descending Triangle, Getting Ready for Break Down

EURUSD rose a little on the hourly chart after the slightly better euro zone consumer price inflation report. The official data showed that the euro zone consumer price inflation fell down to .3% this month from .4% in July as expected by the economists. Core Consumer Price Inflation which excludes food and energy rose to .9% in August on YoY basis and from .8% in July. Economists were expecting the Core CPI to remain unchanged. However a series of other weak euro zone data dragged down the pair. German Retail Sales disappointed the economist’s expectations.

EURUSD : Hourly Chart

On the hourly chart, the pair seems like trading within a descending triangle pattern. It found resistance from the falling resistance trend line of the triangle and paused its gains. The current trend is signaling that the pair will consolidate within this triangle until it reaches the apex and will decline breaking below the key support at 1.3158. 

EURUSD : 4 Hour Chart

On the 4 hour chart also the pair is following the same descending triangle trend and signaling the downtrend. It is expected to continue extending losses.