EUR/USD: Multi-month consolidation nearing end - Westpac

According to strategists at Westpac, the medium-term consolidation in the EUR/USD pair is nearing its end, with risks tilted to a downside break.

Key Quotes: 

“EUR/USD is still consolidating (6-cent range either side of 1.10 since early 2015) - bias is for an eventual range flip lower before a long term base can form” 

“Monthly momentum indicators remain neutral and underscore the likelihood that the triangle-like consolidation remains in place.”

“Despite the slip below 1.0450, the triangle, that has formed since 2015, remains in place. A secondary squeeze is likely before EUR breaks lower.”

“EUR avoided a downside range flip and remains within a broad consolidation. Interim dips need to be contained to allow for a secondary (final) squeeze to 1.10.”