EUR/USD Price Analysis: Adds over 20 pips in Asia as Yen crosses rise
|
- Risk-on powers a 20-pip gain in the EUR/USD pair.
- The currency pair remains trapped in a descending triangle pattern.
EUR/USD is flashing green in Asia amid classic risk-on action in the financial markets.
At press time, the pair is trading at session highs near 1.1262, having put in a low of 1.1241 early Monday.
The US dollar is losing ground against other majors like the AUD, NZD, and CAD, but is pushing higher against traditional safe-haven currencies like yen and Swiss franc. As such, AUD/JPY and other JPY crosses are rising, indicating risk-on sentiment. The S&P 500 futures, too, are signaling risk-on with a 0.28% gain.
However, while the EUR/USD pair has risen by 20 pips, the bias remains neutral, as the pair is still trapped inside a descending triangle, as seen on the 4-hour chart.
A break above the upper end of the triangle, currently at 1.1280 would confirm a bullish breakout and signal a continuation of the rally from lows near 1.0775 seen in May. The triangle breakout would open the doors for a re-test of June highs above 1.14.
Alternatively, a downside break of the triangle would shift risk in favor of a slide to the 200-day simple moving average (SMA) at 1.1039.
Daily chart
Trend: Neutral
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.