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EUR/USD Triggers Bearish Continuation; 1.33 in Sight

Today, EUR/USD fell below last week's triangle pattern, and then the August range consolidation. This came after soft US inflation data, but strong housing data. The USD gained across the board, but the EUR was also weak across the board after the data release. The EUR/USD thus fell and is signaling bearish continuation after a couple week's of consolidation.

(EUR/USD 4H Chart)

The RSI in the 4H and 1H charts are in oversold area, so we might expect some near-term correction, but the short-term outlook remains bearish toward the 1.3295-1.33 lows from Nov. 2013. If price pulls up, expect resistance in the 1.3340-1.3360 area. A break above 1.34 at this point would signal a bullish correction, or simply extension of the consolidation mode in August, albeit with a bearish bias due to the prevailing bearish trend.