The EUR/USD trades inside Monday range, holding its bullish tone according to technical readings, yet unable to break higher, as mixed news are keeping the pair range bound. Italian manufacturing data shows recession extends in the country, while German factory orders come well below expectations. On the other hand, yields of peripheral countries eased a bit since early weekly opening, while local share markets standing in positive territory. While choppy trading continues, the pair is developing a small triangle in the 4 hours chart, a continuation pattern, with indicators heading north above their midlines and price well above moving averages. With the roof of the figure now around 1.2430, past two sessions high, a break above the descendant line will support some follow trough in price action. However, expect stops to be gathered above the 1.2450 so only a clear acceleration above this last should open doors for a continuation towards the 1.2520 area.
The base of the triangle is located now around 1.2380, while a daily high has been set right below, at 1.2375. This last needs to be broken to see the pair turning intraday bearish targeting then the 1.2330/40 price zone.View Live Chart for EUR/USD