Current State Summary: EUR/USD ascending triangle has broken to the downside. Momentum has gone flat after the rally from mid-August. The trend has remained bearish throughout this rally and stopped at 1.1750 resistance level. 1.1750 has been strong resistance since early June.
What Comes Next: Since the broader trend is bearish and the current sentiment is "risk-off" the US Dollar should strengthen against most currencies including the Euro. Keeping the bearish trend in place and with a pickup in negative momentum the 1.1350 level will not hold, and the price will sink to 1.12.
Fundamental Impact: Thursday's ECB report is likely to reflect a Eurozone with weak inflation and weak growth prospects. Concerns regarding Italy will be me the focus, and any commentary will be through the lens of Italian budget plans and the EU's response. Italy is the fourth largest economy in Europe.
Daily Pitchfork Chart here
What Comes Next: Since the broader trend is bearish and the current sentiment is "risk-off" the US Dollar should strengthen against most currencies including the Euro. Keeping the bearish trend in place and with a pickup in negative momentum the 1.1350 level will not hold, and the price will sink to 1.12.
Fundamental Impact: Thursday's ECB report is likely to reflect a Eurozone with weak inflation and weak growth prospects. Concerns regarding Italy will be me the focus, and any commentary will be through the lens of Italian budget plans and the EU's response. Italy is the fourth largest economy in Europe.
Daily Pitchfork Chart here