The euro is trading around 1.0812, below the 200 EMA, below the 21 SMA, and under strong bearish pressure below 1.0864 (2/8 Murray). The H4 chart shows that the Euro is trading within a symmetrical triangle pattern. Hence, EUR/USD is likely to continue consolidating in the coming days.
This symmetrical triangle pattern allows us to buy and sell within the borders of the channel which act as support and resistance. The range area for EUR/USD is between 1.0800 and 1.0840 until its trend is defined.
In case there is a strong break below the symmetrical triangle pattern and a close below 1.0790 on the daily chart, we could expect the euro to reach -1/8 Murray at 1.0681.
In case the euro consolidates above the 200 EMA and a breakout occurs above 1.0830 and above the technical pattern, the euro could rebound to 1.0890, 3/8 Murray at 1.0925 and finally, towards the psychological level of 1.10.
Our trading plan is to buy and sell within the pattern or wait and monitor in case there is a pullback in any direction to make a trading decision according to what the price indicates.
