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Triangle Formation Reinforces Bear Theme

EURUSD TECHS
  • RES 4: 1.1544 Bear channel top from Jun 1 high
  • RES 3: 1.1514 Low Nov 5
  • RES 2: 1.1432 50-day EMA
  • RES 1: 1.1355/83 High Aug 8 / High Nov 30
  • PRICE: 1.1269 @ 05:58 GMT Dec 15
  • SUP 1: 1.1228 Low Dec 07
  • SUP 2: 1.1186/85 Low Nov 24 / Low Jul 1, 2020
  • SUP 3: 1.1128 1.764 proj of the Jan 6 - Mar 31 - May 25 price swing
  • SUP 4: 1.1040 76.4% retracement of the Mar ‘20 - Jan ‘21 uptrend

EURUSD remains range bound and continues to trade below resistance at 1.1383, Nov 30 high. A break of this level would signal potential for a stronger recovery towards 1.1432, the 50-day EMA. The recent consolidation appears to be a triangle formation. This is a continuation pattern and reinforces the current bear trend. The trigger for a resumption of the downtrend is 1.1186/85. This would open 1.1128, a Fibonacci projection.

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