Of late, the pair EUR/USD trades below 1.12. This is amid inflation within the Eurozone that had met expectations with 1.3% in headline and core CPI. Tensions in the Mid-East have been found to not have strong effect on markets. The US ISM Non-Manufacturing PMI is currently being eyed.
As the Euro and the Dollar is caught in a wedge or a triangle within the technical pattern, this strongly suggests lower volatility. However, up until the time that the pair chooses a direction, it will trend strongly. But the question is, to what direction?
Right now, the EUR/USD is trading above the Simple Moving Average based on the 4-hour chart. It is trading closer to downtrend resistance.
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