The euro clawed back losses after solid GDP growth in the eurozone in Q1. On the daily chart, the pair is in an ascending triangle pattern, foreshadowing a breakout that would dictate the direction in the weeks to come. The pair’s choppy path may have shaken out some weak hands, but the latest retreat has found support in the demand zone (0.8490) over the 30-day moving average. The triple top at 0.8585 is a major resistance and its breach could end a four-week long consolidation and resume the rally towards 0.8660.
