The_STA

EUR/USD starts New Year with a hangover

Short
FX:EURUSD   Euro / U.S. Dollar
EUR/USD seems to have started the New Year with a hangover. After spending 4 weeks building a sideways consolidation pattern, this is looking more and more like a potential bearish wedge pattern. These consolidation patterns appear in down moves, they tend to be slightly rising consolidations, this pattern has yet to complete, but will do so on a close below 1.1250, the 4-week support line.

It has recently seen an emphatic rejection from its 55-day ma at 1.1391 and once a close below 1.1250 features it will leave the 1.1186 November 2020 low exposed. This guards the 1.1135 pivot, which extends back to 2009.

Rallies into the 1.1320-1.1340 band should now struggle and while we remain below the 55-day ma we would now maintain a negative bias.

#trendlines #movingaverages #continuationpatterns

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