EUR/USD analysis: Reveals triangle pattern

Dukascopy Bank Team Dukascopy Bank SA

EUR/USD

On Friday, analysts connected the January high levels of the EUR/USD currency exchange rate to reveal a resistance line. Meanwhile, the December 29 and January 4 low levels form a support zone. The two technical drawings combined form a descending triangle pattern. In theory, the pattern should squeeze the rate in, as the resistance line would force the rate into the support zone. Eventually, a break out up or down should occur.

In the case of the pair breaking the resistance line, the EUR/USD might aim at the weekly simple pivot point at 1.1345. Although, take into account that the 1.1330 mark might slow down a surge.

On the other hand, a decline of the pair would first reach the support zone at 1.1272/1.1277. Below the support zone, December 21 and 22 low levels could stop a decline at 1.1260/1.1265.

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Dukascopy Bank Team

Dukascopy Bank SA

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