eur-usd

The market has now entered a period of consolidation which we contend to be a bearish consolidation in light of the previous weekly bearish reversal. While we did not expect to see gains extend beyond 1.4860, the recent break above this level has been met with some stiff resistance and the market has failed to close above.

EUR/USD – The market has now entered a period of consolidation which we contend to be a bearish consolidation in light of the previous weekly bearish reversal. While we did not expect to see gains extend beyond 1.4860, the recent break above this level has been met with some stiff resistance and the market has failed to close above. This keeps the bearish consolidation prospects intact, in favor of an eventual break back below the 50-Day SMA and key short-term lows at 1.4625. Ultimately, only back above 1.4970 which represents the 78.6% fib retracement off of the 1.5060-1.4625 move, would negate outlook and give reason for re-think.

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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