Friday, January 5, 2018

First trading week for the euro is directionless

The EUR/USD has started the first week of the year practically consolidated between the 1.2000 level and the 1.2100 level as shown on the daily chat. Inside the consolidation we can see that the price has formed what it appears to be a bullish flag or a symmetrical triangles. Due to the fact that the trend coming into the consolidation is bullish, there is a higher probability of seeing a breakout to the upside. The MACD indicator is showing us that the bullish trend is still in place, but it looks like it is losing its strength, therefore we could see a bearish breakdown below the 1.2000 level. Below the 1.2000 level its next support could be the 1.1900 level. Until the price breaks away from the consolidation there is no real direction on the EUR/USD at the moment.


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