EURUSD consolidate already 5-weeks at 1.12.

[mlawson71]

EUR/USD is testing the support at 1.1700 again, a breakout below that level could lead to a drop to 1.1560.

[mlawson71]

The pair continues consolidating above 1.1700. I wouldn't open new shorts before the actual breakout.

[mlawson71]

EUR/USD rebounded from 1.1700 after the news and the pair will likely climb back to 1.1800.

[mlawson71]

It has finally become obvious that EUR/USD is forming a flag on the D1 time frame, an obvious correction to its overall move to the upside. Once that correction ends there will likely be a new move to the upside, and the continuation of the upward trend will be confirmed once the pair breaks out above the high at 1.1909.

[mlawson71]

The correction to the downside may be over, considering the hammer bars the pair has formed on the H4 time-frame at the support at 1.1660. I expect a new move to the upside.

[mlawson71]

EUR/USD did rally yesterday before finding a resistance at 1.1830 and pulling back from that level. It appears that the correction that began when the pair reached the high at 1.1910 continues.

[mlawson71]

A quick reminder that Janet Yellen will have a speech tomorrow at Jackson Hole at the Federal Reserve Bank of Kansas City Economic Symposium and it will likely affect all USD-related pairings, including EUR/USD, which will probably continue its consolidation until then.

[mlawson71]

The sideways consolidation has become very tight because of impending news about Janet Yellen's speech. I have closed all my positions just in case. Good luck to anyone trading the news.

[mlawson71]

Yesterday's fundamentals caused a big rally and EUR/USD actually broke out above the last high at 1.1909. I think that if the rally continues next week the pair will climb to 1.2000 and above.

[mlawson71]

EUR/USD has formed a pair of shooting star bars on the H4 time-frame at the last high at 1.1960, so we might see a temporary retracement before the pair continues moving to the upside, as the trend remains very bullish for now.

[mlawson71]

EUR/USD continued rallying and broke out above 1.1960, forming a new high at 1.2069 and reaching the resistance trend line of the upward channel. Should the pair break out above it the bullish movement will likely accelerate, a pullback would be a signal for a move to the support trend line.

[mlawson71]

There's a pullback from 1.2070, let's see how long it will last. So far there's no indication the overall bullish trend is over.

[mlawson71]

EUR/USD also formed a shooting star bar on the daily time-frame at 1.2060, so the correction might end up deeper than expected.

[mlawson71]

The US Non-Farm payrolls were announced earlier today but all they caused was a whipsaw and the tight sideways consolidation continues. It is unlikely it will end before the market closes this week. That said, once it does end there will probably be a new move to the downside.

[mlawson71]

Although EUR/USD continues consolidating sideways the pair has formed an impressive shooting star bar on the weekly time-frame at 1.2070, so a new move to the downside toward 1.1800 is quite possible.