The EURUSD is currently in a downward channel and two alternative scenarios are possible:
The downward channel should signal a further move to the upside. This view is supported by the fact that the pair broke up a similar consolidation in late-May/early-June and the price has increased until early September when it started consolidating. The RSI Exhaustion indicator is also supporting this view. In fact, it is increasing (diverging with the price!) and became bearish exhausted twice (colored red) in the last couple of months. A break to the upside can push the price in the 1.22-1.24 area.
On the other hand, the price could continue to consolidate for some time and eventually move down at least until the 1.115 level. In such a case we should expect to see the RSI Exhaustion decreasing, becoming bearsih exhausted (colored red), and eventually becoming oversold as well.
Among the two alternatives, the first (breakup) is the one more likely but remember to be patient and always check confirmation from the indicators!
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The bullish scenario took place and the price is now moving towards the 1.22-1.24 area.
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The price has just touched the 1.22 level and further upside is possible.
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Almost at 1.23!
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1.2335 and still pushing up
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Recently formed a new consolidation with further upside potential.