EUR/USD Price Analysis: There is a pattern retest in progress as EUR/USD dips back below 1.13
|- EUR/USD trades 0.24% lower as the single currency struggles on Tuesday.
- The pair broke out of the triangle formation on Monday and the price has come back.
EUR/USD 4-hour chart
The EUR has underperformed today, especially against GBP as EUR/GBP trades at the bottom of the G6 leaderboard on Tuesday. Overnight the pair broke through 1.13 once again but as the session progressed the sellers entered the market and the price dipped back below.
Looking at the 4-hour chart, the key feature is the triangle pattern marked out in black. The pair broke out of the pattern overnight but the bears have now sent the pair back lower to test the top of the structure. This is often the case when it comes to patterns and now it would be prudent to keep an eye on another move higher.
The indicators are looking pretty mixed. The Relative Strength Index looks like it's about to move through the 50 mid-point once again. The MACD histogram is still green but the bars are diminishing in size. The signal lines are still above the zero line but there is about to be a bearish crossover. The chart is still a bullish one but the consolidation high of 1.1348 needs to be broken if the bulls are to have any chance of testing the highs.
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Additional levels
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