ING discusses EUR/USD technical outlook and flags the recent sideways consolidation pattern in the near-term.
“The daily momentum chart is not improving despite yesterday’s rise within the consolidation pattern. This is confirming our view that there will be no upside within this consolidation pattern. The strong resistance area remains unchanged between the horizontal line around 1.1530 and the declining EMA-200 line at 1.1579,” ING notes.
“Short-term support within this sideways pattern comes in between the flat MA-50 line at 1.1374 and the underlying trend line around 1.1315. A close below this trend line is required to expect a resumption of the long-term downtrend,” ING adds.