Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

EUR/USD Trading in a Consolidation Range

EUR/USD has paused its decline from 1.40 after finding support around 1.3585.

(eurusd 1h chart, 6/4)

The 1H chart shows the EUR/USD ranging roughly between 1.3585 and 1.3650. A break above 1.3650 completes a double bottom, and opens up the 1.3685 highs. Above that, the 1.3730 level would be the next resistance.

Yesterday EUR gained despite soft CPI data. This suggests it is either done with recent bearish correction, or if it is still bearish, it is probably developing some bullish correction or consolidation. We are already seeing the consolidation part develop over this past couple of weeks. 

If price falls below 1.3585 instead of clearing above 1.3650, the bearish outlook continues, with the 2014-low near 1.3475 in sight.

Thursday's ECB policy announcement and Friday's US Non-Farm Payroll data will be key in directing the market out of this week's consolidation range so far.