FX.co ★ EUR/USD: triangle pattern

The EUR/USD pair rebounded in the short term and is located at 1.0699. In the short term, it is moving sideways, so we'll have to wait for fresh opportunities. The Dollar Index's sideways movement forced the price to move in range as well.

The price tries to jump higher which could be natural after the US Prelim UoM Consumer Sentiment came in worse than expected on Friday. Tomorrow, the US is to release its inflation figures, so the volatility could be huge. The CPI m/m and CPI y/y may announce lower inflation in October compared to September. This situation could weaken the greenback.

On the other hand, the Eurozone and German ZEW Economic Sentiment could have a significant impact as well.

EUR/USD Trading In Green!

Technically, the EUR/USD pair retreated a little after reaching the 1.0756 former high. The correction was natural after the last rally.

As you can see on the H1 chart, the price action developed a triangle pattern. So, escaping from this pattern could bring us new opportunities. The former high of 1.0756 represents a potential target.

EUR/USD Outlook!

A valid breakout above the downtrend line, jumping and closing above it is seen as a bullish signal as the EUR/USD pair should extend its growth.