EUR/USD’s rally has put the top of the long-forming triangle pattern on the daily charts in play today. Connecting the tops at 1.4337 and 1.4200 puts resistance at 1.4137 today. One caveat however: Triangle breaks outs tend to be more powerful after relatively short consolidations. We’ve been in this pattern for over a month now, so I’m not sure your will see any kind of explosive topside move if resistance is overcome.
Expect a few hours of consolidation until the FOMC minutes are published this afternoon. The minutes will contain the latest Fed forecasts as well as their thinking behind not making any additional moves to extend quantitative ease as yet.
