EUR/USD is consolidating in a sideways move and has formed a contracting triangle pattern. The upper boundary of the triangle is at 1.2435-1.2440 and the lower boundary is at 1.2385-1.2380. We also find the kijun-sen indicator as support at the 1.2375 area. A 4 hour close below 1.2375 will be a bearish sign implying that this pair should move towards cloud support at 1.2250. However a break above 1.2440 will give the opposite sign…a bullish one implying that price is heading back towards its recent highs of 1.25-1.2540 if not higher.
Daily trend remains bullish as long as price is above 1.22 and inside the blue bullish channel.
Daily support is found by the tenkan-sen (Red line indicator) at 1.2350. A daily close below it will most probably push price towards the kijun-sen (yellow line indicator) at 1.22-1.2170.
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