EURUSD – Coiling Inside a Symmetric Triangle, Breakout Looms

In today’s technical analysis, we take a closer look at EURUSD, which has been locked in a sideways movement since the end of June. The pair is consolidating inside a symmetric triangle, marked clearly by narrowing highs and lows. Despite a heavy-hitting macro catalyst like last week’s non-farm payrolls, we still haven’t seen a decisive breakout. Instead, we experienced a sharp post-data swing down followed by an equally quick recovery, bringing the pair more or less back to pre-NFP levels.

Now, the price is approaching the apex of the triangle, and volatility compression suggests a breakout is imminent.

• Primary View: A break above the upper black trendline of the triangle would generate a clear technical buy signal, with momentum likely to build quickly.

• Alternative View: A break below the lower black trendline, especially in conjunction with a close below the yellow horizontal support, would trigger a strong sell signal and open the door for a deeper retracement.

This coiling price action won’t last much longer. Traders should be on breakout watch – directional momentum could accelerate rapidly once the pattern resolves.

Source: https://www.axiory.com/analytics/technical-analysis/eurusd-coiling-inside-a-symmetric-triangle-breakou