EUR/USD Bearish but Trapped in a Running Triangle
The absence of any important data today, bank holidays in USA and Canada might be an excuse for potentially slow price action on major crosses, especially EUR/USD. EUR/USD aka “the fiber” is slowly moving down, trapped within a symmetrical running triangle and currently it is in no man’s land. I don’t expect that ECB will consider a change to interest rates anytime soon and that will cap the fiber upside.
This week’s most important data is German ZEW economic sentiment on Tuesday. From technical perspective we see two important points. X crosses ™ of 61.8 and 23.6. If the price breaks 1.1215 it might break the series of lower highs (purple rectangles) and proceed towards 1.1245 and 1.1280. However after price broke below 1.1145 it should aim for 1.1100 and 1.1060. I am a bit more bearish on the pair but in the absence of clear POC zones for positional trades, we might trade to watch for breakout setups.
Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets.