Forex Technical Update
The EUR/USD continues to twist and turn in consolidation which is developing into a large triangle. Note the recent inability of 1H RSI to tag 30 or 70 showing lost of momentum both ways. Price action reflects that as it drifts sideways around the 200 hour simple moving average. The triangle that has materialized is also nearing the apex. The break above or below the triangle should not immediately be a sign of the market picking a direction. It can simply mean expansion back into a range-bound market.
Looking at the 4H chart, the break to the upside is limited to 1.5330, above which 1.36 is the next resistance. To the downside, the first target is 1.3260, and then the low near 1.3215.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources