A lack of any economic data from the eurozone saw the euro trading to the USD flows. The common currency continues to trade soft, as it has done for the past few days.
The consolidation is likely to continue ahead of next week’s ECB monetary policy meeting.
EUR/USD Consolidating into a Bearish Flag
Price action in the common currency is consolidating into a bearish flag pattern. This indicates a downside risk. The support area of 1.1100 remains in place for now. But if the bearish pattern is validated, we expect the declines to push through to 1.1072 level eventually.
To the upside, the EURUSD will need to break out convincingly above the 1.1150 resistance level.
