EUR/USD Nears Symmetrical Triangle Break, GBP/USD Eyes $1.5721
- EURUSD in symmetrical triangle on H4 since November 4.
- GBPUSD first support comes in at 1.5421.
With no 'high' event risk on the DailyFX Economic Calendar during today's North American trading session, it's a good time to step back, ignore the noise, and refocus on the charts. Regardless of what geopolitical news or central bank rumors there are afoot, it's always important to remember to shape your views to the charts - not to try and shape the charts to fit your particular biases.
As we wander into the technical forest, we can't help but notice that there aren't many similarities among the trees: AUDUSD is back in its September-November range after a false breakout lower; EURUSD has been consolidating in a triangle the past seven trading days; USDJPY remains a momentum favorite, holding its 5-EMA; and GBPUSD's continuation lower has begun as it hit fresh 14-month lows today.
And yet, when we step back to see the forest from the trees, a clearer picture of US Dollar neutrality emerges: the USDOLLAR Index has traded in a narrow, <1% range since November 6. Gains seen by the greenback have originated in only two of the majors; and failure by the buck to capitalize on its bullish momentum leaves traders cautioned in AUD and EUR.
It's important to remember how the US Dollar got to its position of strength: on the back of the futures market having the most crowded long US Dollar position in history.
See the above video for technical considerations in EURUSD, GBPUSD, and EURGBP.
--- Written by Christopher Vecchio, Currency Strategist
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