EURUSD formed an inside bar - Breakout in the making?
After rallying strong on last Friday's NFP print, EURUSD has remained flat on Monday/Tuesday, forming an inside bar at the top end of the rally. A breakout is therefore likely to set the direction in the near term.
To the upside, 1.140 is the key level to watch, a break higher could extend gains above 1.140 but keep prices range bound below 1.15.
To the downside, 1.130 is the key level to watch out for which could see EURUSD slide towards 1.120 and to 1.10.
For you Fib fans, 1.1418 remains the 61.8% retracement level of the previous decline from 03/05 highs of 1.16163 and 30/05 lows of 1.10978.
To the upside, 1.140 is the key level to watch, a break higher could extend gains above 1.140 but keep prices range bound below 1.15.
To the downside, 1.130 is the key level to watch out for which could see EURUSD slide towards 1.120 and to 1.10.
For you Fib fans, 1.1418 remains the 61.8% retracement level of the previous decline from 03/05 highs of 1.16163 and 30/05 lows of 1.10978.
The inside bar breakout is not looking convincing at all especially with 1.140 resistance sitting to the upside. The 4-hour chart shows a rising wedge pattern. A break down below 1.140 could signal a move to 1.130 support.