Tech view:
EUR/USD
(1.1590 Last) – negative below 1.1714, target a move back to 1.07/1.08 ?
The CCY pair is drifting higher and is now testing the 24/8/15 high at 1.1714. While below this level it is still possible that the CCY is in a wave 4 triangle consolidation pattern. In the majority of cases a triangle consolidation pattern is a pause in the trend and therefore while 1.1714 caps the upside one should expect a move lower towards the lower boundary at 1.07/1.08 and eventually a downside break which would complete the double zigzag pattern which began in July 2008 at 1.6038.
Strategy: Short 1 unit at market price, target 1.08 with a stop at 1.1725
Weekly chart
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