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EUR/USD is trading in a symmetrical triangle (or a narrowing flat channel) on the hourly chart. The pair is closer to uptrend resistance. Where will the pair break to?

The triangle was formed in the Non-Farm Payrolls volatility: the wild move down set the bottom of the uptrend support line, and the consequent shoot higher set the top of the downtrend resistance line, as the chart shows:

EUR USD Symmetrical Triangle Narrowing Channel May 7 2013 technical analysis

These lines are set to meet before on Thursday, during the European session. The break to the upside or to the downside will probably be seen earlier. Yet, to which direction?

Support is at 1.3050 and 1.30. Resistance is at 1.31 (weak) and 1.3160 (strong). For more, see the  Euro to USD forecast.

The euro has suffered from Mario Draghi comments (more than once) about a negative deposit rate. On the other hand, flows into the euro-zone and a rise in German factory orders certainly support the pair.

Live chart of EUR/USD:

[do action=”tradingviews” pair=”EURUSD” interval=”60″/]