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Forex: EUR/USD, further consolidation or break down - 2ndSkies

FXstreet.com (Barcelona) - The EUR/USD, while still trading on no man's land territory, has managed to gain a bit of impetus to the upside by breaking through intraday conventional resistance at 1.3060, leading to a rise which has temporarily topped out at 1.3075 before a rotation lower. The most traded pair in the foreign exchange market is 15 pips or 0.11% above yesterday's close.

The pair has been whipsawing with a slightly positive bias as per higher highs and higher lows observed in the past 24 hours, although trading continues to develop within the context of a choppy market until a resolution of 1.3120/40 demand - also 61.8% fibo retracement from the latest daily decline off 1.32 - or 1.30 protection takes place.

Chris Capre, founder at 2ndSkies, notes: "The pair formed an inverted pin bar + inside bar combo just above the support at 1.3021 and daily 20ema. The inverted pin bar is a failed attempt to rally, so we are back in the range between 1.3121 and 1.3021."

Chris suggests bears to look for shorts on corrective rallies into 1.3120, while buyers may look for weak pullbacks towards 1.3021

"Generally a false break after a range, either means further consolidation, or break down, so watch for clues at the range borders, but a failure to break 1.3121 will likely see more bears come in and challenge the bulls above the big figure below" Chris added.

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