the daily chartist

EUR/USD stuck without a clear direction

published 1 year ago

 The Euro has stalled a bit after the prolonged selling in May, playing out the major Bearish triangle. Fundamentals have gotten better recently and sentiment has calmed a bit as the Italian crisis passed away (for now) and Greece moved away from the radar again. The pair found itself in a loop up and down from 1.15081 - 1.15274 on the bottom side and on the top circa 1.17860 and to 1.18000. As the price is still under the MA200 and 50's Death Cross it was able to test the MA50, but failed. The pair is still subdued by the psychological effect of the cross and remains lower. As conditions get better and better, USD weakness has returned and this supported the Euro to climb. Now it is forming up a (for me) a Bullish triangle on the Daily chart with a target in the long - term to 1.20450. Good buy entry point will be the break above MA50 (blue curve), there will probably a short-term test of the break out to see if it's convincing, with SL under 1.7000. Trailing stops are good to follow with the price for any eventual rapid shifts in the movement against the major direction. Wait and see for now as the price is nearing the MA50 again and the top yellow line of the formation.