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FX.co ★ EUR/USD: symmetrical triangle to explode after CB consumer confidence report

EUR/USD: symmetrical triangle to explode after CB consumer confidence report

The EUR/USD pair is moving somehow sideways in the short term. It was traded at 0.9630 at the time of writing. Most likely, traders are waiting for the US CB Consumer Confidence which represents a high-impact event. The indicator is expected to grow from 103.2 points to 104.0 points.

In addition, the New Home Sales indicator will be released as well and it's expected at 500K in August, while Richmond Manufacturing Index could be reported at -10 points below -8 points in the previous reporting period.

EUR/USD Sideways Movement!

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EUR/USD: symmetrical triangle to explode after CB consumer confidence report

As you can see on the H1 chart, the price action developed a symmetrical triangle. Escaping from this pattern could bring us new opportunities. The bias remains bearish as long as it stays under the downtrend line.

The EUR/USD pair failed to stabilize above the 23.6% (0.9670) retracement level signaling downside pressure.

EUR/USD Outlook!

A downside breakout through the triangle's support and a new lower low, dropping and closing below 0.9606 activates a sell-off towards S1 (0.9550). Also, testing and retesting the 23.6% (0.9670) and the downtrend line, registering only false breakouts may announce a new drop.

Only a valid breakout above these upside obstacles may signal a larger rebound.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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