- Fundamentals are heavily stacked against the EUR.
- Technically speaking, the daily chart is bearish but the inability to break below 1.3140 certainly introduces uncertainty, and it could easily rally towards 1.38 without endangering the downtrend.
- The hourly chart looks to be forming a flag-like ‘consolidation pattern’ which does suggest more gains.
- The market is still quite short according to most reports.
Pros and Cons here which suggests some more range trading before the next move. Continue to play the 1.3420/1.3520 consolidation range and don’t commit to either side until we get a break. Medium term favours selling bigger rallies once short-squeeze is complete.
