EUR/USD – Coasting into year-end

The end of the year is drawing near and some markets may finally be in holiday mode.

EURUSD has been range-bound for a month and last week could have provided the catalyst to change that – Fed accelerating tapering and bringing forward rate hikes, ECB ending PEPP – but instead, it just confirmed that markets were well positioned.

Now it seems they may be snoozing into year-end. But where does that leave us? The pair remains in a bearish pattern and unless we get a break higher, the path of least resistance remains below.

But it could be argued that the recent consolidation is a holding pattern that could precede a trend reversal. A move above 1.14 would certainly support that, breaking the highs and the 200/233-period SMA on the 4-hour chart.

A break of 1.15 remains the big test though.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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