© Dukascopy Bank SA
For a fourth month in a row the most traded FX cross has been rejecting the idea of confirming a triangle pattern. Despite that, the apex is nearing and a break-out is highly likely in the nearest future. Continuation pattern implies that the Euro will resume sliding against the US Dollar, meaning a support zone at 1.0852/14 carries much higher risks than the red trend-line at 1.0955. On the side of bulls, all moving averages and dense technical areas are placed below the spot, while 4H indicators are giving positive signals. On the other hand, weekly studies see EUR lower and SWFX market sentiment is 55% short. To confirm a long-term commitment to decline, the pair will have to violate monthly PP at 1.0814.
© Dukascopy Bank SA