EUR/USD: Triangle Top Still In Place But Watch For A Scope Of A 6-Days Consolidation – BofAML

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EUR/USD fell to the lowest levels since December as the greenback pushed forward and Europe’s economic slowdown seems serious. What’s next? The team at Bank of America looks at the charts.

Here is their view, courtesy of eFXdata:

Bank of America Merrill Lynch Research discusses EUR/USD technical outlook and maintains the view that the pair has confirmed a triangle top on the daily chart, but flags a scope for a 6-days consolidation period before resuming its move lower.

The triangle top targets the mid-1.18s and the expanded flat pattern underway implies a decline as deep as 1.1709 – 1.1676. The latter is not asking for much given it’s just a 38.2% retracement.

“EUR/USD has marked daily closes below a sea of support levels earmarking the bearish tone and decline. The 50d SMA may soon cross below the 100d SMA. After this cross, EUR/USD tends to consolidate for six trading days,” BofAML argues.

In line with this view, BofAML maintains a short EUR/USD* position targeting a move to 1.15.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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