The EUR/USD pair had broken out above a falling wedge pattern on the daily chart and has begun to consolidate. The low holiday trading volume may mean that the pair will remain range-bound for some time. As I said in my previous eurodollar analysis I would like to see a break of the highs at 1.2425 for further bullish confirmation and a run up to the monthly pivot at 1.2636. As far as downside goes, once again 1.2300 is key and bears need to break below that to regain control, with a break opening the way to 1.2210.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst