Price action on EUR/USD over the past week has created an uncertain outlook now. The market is lacking traction in direction and the recovery trend has been broken. The pair looks to now be forming a broadening range (around four weeks in duration now). Support forming of recent lows $1.1165/$1.1190 coming above the old key $1.1145 breakout suggests that this is a bullish consolidation. Momentum indicators are settling down now too, with RSI stabilising around 50 and Stochastics looking to bottom. Taking a snapshot of recent candlestick configuration, in the past six completed sessions, there have been two strong bull candles, two strong bear candles and now latterly a couple of candles lacking conviction. With the market rolling over a shade this morning, there is very mild negative bias forming, but the hourly chart shows support around $1.1215 initially to protect $1.1190. Whilst support at $1.1165 holds, the outlook will retain its ranging configuration. A close below $1.1145 would be a key negative break. Resistance now initially at yesterday’s high of $1.1288.
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