Market Condition: Consolidating Triangle
Target 1: Triangle Support 1.1100
Invalidation: Bullish Breakout Above Resistance
EURUSD 1Day Chart
(Created using Marketscope 2.0 Charts)
The EURUSD continues to trade inside of a descending triangle, after today’s NFP news event failed to produce a breakout. The triangles line of resistance is formed by connecting a series of lower highs, starting with the August 24th high found at 1.1714. Price is currently trading at resistance, which is now found near 1.1300. A retracement from this value would potentially expose a move back towards support near 1.1100.
In the event that prices move above resistance, this suggests that the EURUSD is attempting to breakout towards higher highs. In this instance, price action would invalidate the current triangle pattern.
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