Jul 25 2018

EURUSD – Consolidation in a bear Pennant

EURUSD:-After a steep fall on the down break of 1.22 mark, the pair EURUSD has extend its losses  up to 1.1510 level, a major 700 pips fall. At present the single currency has started consolidating in a bearish Pennant pattern formation, the Pennant formation on the daily chart points to bearish set-up – in which the price action has already stared converging its peaks and bottoms. From current levels, the 1.1655-50 region is an immediate support, which if broken might accelerate the fall towards the 1.1600 handle. The convincing break of 1.1600 mark will opens the door for another 300 pips fall, the minimum Pennant target(which means EURUSD at 1.13) – concluded by the width of pattern origin(1.1800 – 1.1500 approx). Momentum indicator 14-day Relative Strength Index(RSI) is neutral at 50 mark.