We Should Expect An End Of The EUR/USD Consolidation And A Breakout Below 1.1510

I think that at this stage we should give up on the idea for a rally to 1.1800 – 1.1850, let alone toward 1.2000.

The pair has been forming a sideways consolidation for two and a half months. The fact that that there was a breakout below the symmetrical triangle that I drew in a previous post  as well as the fact that the consolidation that lasted for ten weeks did not remain above 1.1710 for long should point us to the expectation for an end to that consolidation and a continuation of the downward trend.

I think that every rally should now be viewed as corrective, as gathering of liquidity and an attempt for a drop below the local low at 1.1507, which should open the way to 1.1350 –  1.1300.