Forex: EUR/USD ranging within a continuation triangle formation - Valeria Bednarik

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FXstreet.com (Barcelona) - The Euro has remained consolidating between 1.4670 and 1.4780 after its decline from 1.5145 area, and the trading range getting tighter and tighter, giving shape to a continuation triangle, according to Valeria Bednarik, collaborator at FXstreet.com.

Dollar is shaping a continuation triangle shape to consolidate recent gains, says Bednarik: Pair remains ranging inside a continuation triangle, with dollar consolidating past days' gains. Bigger time frames had a bearish perspective after pair break under the daily ascendant trend line coming from March lows past Friday, and gold is losing the 50% retracement of the last daily up leg, favoring further dollar rises.

Key support level lies at 1.4680, according to Bednarik, below here, the Euro would accelerate downtrend: Under 1.4680, pair should accelerate to the downside, and approach to next key support around 1.6420. Price action around there will be key: a rebound on that zone, will put the midterm bearish perspective on doubt, while a break lower will confirm it.

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