EUR/USD: technical thoughts

By Mark Jensen

EUR/USD keeps consolidating in a very calm manner. The pair’s short-term consolidation channel was sloped a bit up. Euro may form a flag and decline testing $1.3490 and $1.3460.

However, there are reasons to be cautious. We didn’t see 2 lower daily closes in a row and this creates some risks for the bears. The current pattern resembles formation seen on Jan. 22 when after a similar consolidation the bulls managed to break substantially higher.

Still, resistance at $1.3580/3600 feels rather oppressing and bears control the situation until the pair’s trading below this area. The risks coming from the ECB meeting are dovish and euro-negative.

Chart. H4 EUR/USD

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