- The EUR/USD pair continues to show some resilience near the very important 200-day SMA, albeit lacked any strong positive momentum on Wednesday.
- The intraday uptick remained capped near a descending trend-line resistance, constituting towards the formation of a descending triangle on the 1-hourly chart.
Although descending triangular formations are typically considered as a continuation pattern during a well-established downtrend, there are instances when the pattern forms at the end of an uptrend.
This coupled with the fact that the pair has slipped below 100-hour SMA for the first time in about a week further suggests that the recent positive momentum might have already reached a near-term top.
A convincing break through the triangle support – coinciding with 200-DMA, will reinforce the bearish outlook and prompt some technical selling, paving the way for a slide towards the 1.1300 handle.
However, a sustained move beyond the 1.1390-1.1400 region will negate the bearish formation and assist the pair to build on its recent positive momentum further towards the 1.1445-50 supply zone.
EUR/USD 1-hourly chart
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