Technical outlook:
EU/USD continues to trade within a tight range between the 1.1240 and 1.1340 levels. The currency pair is into its fourth week of consolidation as we approach the last trading week of 2021. A breakout can be expected in the next few trading sessions, which could push prices higher towards 1.1500 at least. A bearish breakout might test 1.1000 before resuming higher again.
EUR/USD is carving a potential bullish tringle consolidation within its recent upswing between 1.1186 and 1.1383. The bottom of the range is lcoated near the Fibonacci 0.786 retracement of the above rally around 1.1222. If the above holds well, the pair could be well on its way through the top of the range of 1.1383 as bulls come back into control.
The wave structure of EUR/USD also suggests a potential rally towards 1.2350 and higher in the next several weeks. The earlier bullish boundary between 1.0636 and 1.2350 was retraced through the Fibonacci 0.618 level towards 1.1186. Ideally the next leg should rally through the 1.2350 resistance level before reversing lower.
Trading plan:
Potential rally towards 1.2350 against 1.1100
Good luck!
