The EURUSD currency pair saw another week of sideways trading.
This article is originally referred from Orbex Technical Analysis.
After initially rising to the resistance level, the currency pair failed to breakout above 1.1730.
The declines off this resistance level coincided with the ECB’s monetary policy meeting.
Although the ECB maintained its policy unchanged, the euro fell sharply on the day.
The ECB president, Mario Draghi maintained that the ECB would be cautious in ending its QE program this December.
He also reiterated the ECB’s plans to leave interest rates unchanged until middle of next year.
The EURUSD has been trading in a range of 1.1800 – 1.1550 since late May.
From a technical perspective, the daily chart is signaling that the recent consolidation is taking place within a triangle pattern.
This exposes the currency pair to a breakout in either direction. However, the bias remains to the upside for the moment.
In the near term, the currency pair is expected to trade flat unless we see a breakout above 1.1800.
This would potentially extend the gains in the EURUSD toward 1.2000 level at the very least.
Alternately, to the downside, a breakdown below 1.1600 – 1.1550 could send the currency pair pushing briefly lower.
Original Source: Orbex Technical Analysis