EURUSD: Triangle on 1D. Awaiting confirmation/ ECB.

The pair has been trading sideways within a 1D Triangle (RSI = 49.782, ADX = 18.256, CCI = 16.9931, Highs/Lows = 0.0000) since early November's 1.1215 bottom. 4H is on a Channel Up that made yesterday its Higher Low and is currently rising. However its upside potential remains limited within the upper trend line of the Triangle below its 1.1440 previous Higher High. We can only engage this with relative safety after the 1D Triangle breaks out and only as far as the Resistance (1.14723, 1.14995)/ Support (1.12678, 1.1215) levels indicate. This break out may take place this week after the ECB announce its Rate Decision and hints towards future monetary policy on Thursday. Since however the underlying long term trend remains bearish on 1W (RSI = 40.091, MACD = -0.014, Highs/Lows = -0.0016, B/BP = -0.0067), shorting those bullish legs on the lower time frames is the most optimal approach.

See our long term approach on EURUSD below:



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