The technical consolidation that has been ongoing throughout the past few weeks maintains a neutral outlook on EUR/USD
. In the wake of the ECB last Thursday, there looked to be the prospect of some direction forming, but there was a degree of stabilisation with Friday’s mild positive candle and the sellers could not breakaway. Although there is a very slight negative bias, with the Stochastics having swung lower, there is still a consolidation within the converging trendlines
, whilst the RSI
remains in its 45/55 tight band of several weeks. The trendline support is at $1.1595 today whilst the reaction low to watch is $1.1570. The upper trendline is $1.1730, with key near term resistance at $1.1740/$1.1755. The market is awaiting a catalyst which may come from the major central banks this week, but for now we wait.