EUR/USD Technical Analysis: Stays sidelined near term. Imminent breakout of the pennant pattern

• Spot failed to advance further north of the 1.1750 area on Monday, sparking the subsequent leg lower to the current 1.1650/40 band.
• Initial resistance emerges in the 1.1681/88 band, where converge the 55-, 10- and 21-day SMA. The base of the daily cloud also reinforces this resistance zone.
• Investors are looking for a breakout of the pennant pattern charted from June’s 1.1853 and 1.1509.
• In the meantime, the near term outlook for the pair remains negative while below the resistance line, today at 1.1728.

EUR/USD daily chart

Daily high: 1.1668

Daily low: 1.1632

Support Levels

S1: 1.1645

S2: 1.1630

S3: 1.1602

Resistance Levels

R1: 1.1687

R2: 1.1715

R3: 1.1730