EUR/USD technical analysis: range looking like bullish consolidation
EUR/USD has been without many directional cues lately, but overall the range appears to be favorable for the broader outlook; waiting on a breakout to confirm.
EUR/USD technical outlook
- EUR/USD continues to be bound by a range
- In context of the trend from March it could be bullish
- Waiting on a breakout above $1.2011 to confirm
The EUR/USD has been a difficult place to be these days with no good directional cues to lean on. The range, though, building over the last few months should lead to a sizable move once broken. Looking at it in the context of the trend off the March low, it appears at some point it will break out to the top-side, but waiting for confirmation may be the prudent play instead of getting chopped up in the range.
A break above the $1.2011 level, the 1 September high, should have EUR/USD rolling higher. Looking to the left on the chart, there isn’t any strong levels to speak of until we get to the topping sequence in 2018 in the vicinity of $1.24/$1.25.
To turn the picture bearish, a break below the monthly low at $1.1602 should do the trick, but not too far below there the March spike-high could come in as support at $1.1495.
Neither the top or bottom side of the range look to be in danger of breaking at the moment with volatility having died down significantly since the days following the U.S. election. With that said, laying low and waiting for better clarity may be the most prudent move at this time.
EUR/USD daily chart
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