As today’s European session approaches, the EURUSD pair is trading at 1.2388 (-0.14%), so the euro has been slowly declining against the dollar since the end of last week. The US dollar index (DXY) has been given a boost thanks to the dollar’s rise on multiple pairs and is now trading at 89.23 ( 0.17%).
There’s not much expected on the news front today. At 13:00 (GMT 3), the ZEW will publish its economic sentiment surveys for Germany and the Eurozone in February. At 14:00 (GMT 3), the CBI will release its industrial trends survey on orders for the UK in February. I don’t think that the European statistics will have much of an effect on the euro at the time, but the CBI survey could significantly increase volatility on the pound.
On the hourly timeframe (H1), the EURUSD pair is trading around the low (1.2350 – 1.2390) in the double top (1.2480 – 1.2520):
As such, we now have a confirmed triple top on H1:
This all means that that there is a solid resistance around the triple top level, which is preventing the euro from rising.
So, today, I reckon that we could see the first attempt at a downwards breakout below the low level of the double top, followed by subsequent movements within a corridor of 1.2190 – 1.2290, where the pair went through a phase of consolidation in January.