EUR/USD

EUR/USD continues to consolidate in a tight range between 1.33 and 1.305. Over the past 3 months currency pair formed a contracting range (symmetrical triangle) that is likely to be followed by a strong trend period. As we get closer to the apex of the triangle formation, probability of breaking out in one direction is increasing. It is always better to wait for a confirmation in the form of a daily or weekly close above/below major support/resistance levels. In this case we will be watching two important levels 1.305 as a support and 1.33 as a resistance. Though in the short-term a break above 1.33 will be positive for Euro, in the intermediate-term outlook will turn to positive only after we see EUR/USD crossing above the 200 day moving average at 1.34.