EUR/USD back near key support
EUR/USD has been consolidating over the past three trading days, with price bouncing from $1.0565 support on three occasions. This level will be key to understanding when the pair finds a clear direction once more.
With the pair setting consecutive lower highs, this has the properties of a descending triangle, which points towards a likely break through $1.0565 support.
A closed hourly candle below $1.0565 would provide the bearish signal that seems likely to spark the next leg lower in accordance with the primary downtrend. Support levels of note are at $1.0565, $1.0553 and $1.0520.
A close above $1.0605 would point towards a continuation of this consolidation, with resistance levels of $1.0628 and $1.0641 in view.