EUR/USD – Coasting into year-end

As The end of the year is drawing near and some markets may finally be in holiday mode. And also some changes do happen between some pairs. Below let's look at the EUR/ USD analysis.

EURUSD pair has been range-bound for a month and last week could have provided the catalyst to change that – Fed accelerating tapering and bringing forward rate hikes, ECB ending PEPP – but instead, it just confirmed that markets were well positioned.

Looking at the chart it seems they may take nap or be snoozing into year-end. But where does that leave us？ The pair of remains in a bearish pattern and unless we get a break higher, the path of least resistance remains as seen below.

Even though it could be argued that the recent consolidation is a holding pattern that could precede a trend reversal. A move above 1.14 would certainly support that, breaking the highs and the 200/233-period SMA on the 4-hour chart. A break of 1.15 remains the big test though.