Looking at the EURUSD, Wilson Leung, Chief Market Strategist for Trendsetter FX takes us through the technical picture and what he believes is a chart facing EURUSD consolidation. The daily chart show the Euro made temporary low last week at 1.1554. We have seen an erratic decline since September at 1.2093 (2.5 year high).
To complicate the picture there are a lot of data points coming in, ECB conferences, German GDP data, US Key CPI, US Retail sales, Euro CPI, and many more. This makes trading far more difficult as it will react to each and every data release.
The outlook is pretty neutral. Wilson is still a seller on the current rebound though. If the pair can close above 1.17 then this would indicate that the decline has made a temporary low, with the risk being a stronger upside retracement at 1.1870 / 1.1880.
Longer Term Picture
The longer term picture shows that the Euro has completed an upward move starting in January. The current decline signals a temporary top formation. The counter trend downward move will continue for a little while, bit it will not come off sharply. Wilson is still however a medium term Euro bull.