EUR/USD technical analysis: Bid near 1.12, stuck in a pennant pattern
|- EUR/USD has charted a narrowing price range or a pennant pattern over the last four trading days.
- A pennant breakout would imply a continuation of the rally from recent lows near 1.1027.
EUR/USD is mildly bid around 1.12 at press time, but the outlook remains neutral with the pair still trapped in a pennant pattern.
Pennants are considered as continuation setups, meaning they end up accelerating the preceding move.
EUR/USD has charted a pennant pattern after having rallied from 1.1027 to 1.1250.
So, a pennant breakout on the 4-hour chart, if confirmed, will signal a resumption of 1.1027 and could yield 1.14. On the way higher, the pair may encounter resistance at 1.1286 (July 11 high).
On the other hand, a pennant breakdown would imply an end of the bounce from recent lows near 1.1027.
4-hour chart
Trend: Neutral
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.