Continuing to consolidate | 15 November 2013

EUR/USD has continued pulling-back and slowly crawling higher in a triangle-like consolidation pattern. This pattern, looks almost like a right-angled triangle with bullish potential, however, the overall short-term trend is strongly bearish after the break below 1.3475, so this consolidation is probably only a temporary correction before the next leg lower unfolds. A break below the 1.3420 lows would help provide confirmation of a resumption of the down-trend, targeting the 1.3295 lows, at first and then possibly as low as 1.3050 eventually. Alternatively a move above 1.3550 would be a bullish sign indicating the possibility of a reversal.