Karen Jones, analyst at Commerzbank, explains that the EUR/USD pair has tried to break up from a falling wedge pattern, but the market faltered ahead of initial resistance at the 200 day MA at 1.1476 and has gone into consolidation mode.

“We suspect that it is trying to base but need to do more work – once above the 200 day MA this will target the 1.1570 January high together with the 55 week MA at 1.1610. We view 1.1176 as an interim low in place. Initial support lies at 1.1216 November low ahead of 1.1176 low. Long term trend (1-3 months): Completed a falling wedge – target the 55 week MA. Then the 1.1815 September 2018 high on route to 1.20.”