EUR USD continues trading in bearish consolidation pattern

EUR/USD (daily chart shown below) has continued to trade within a triangle consolidation pattern with a bearish bias. This pattern may also be viewed as a bearish pennant formation.

The current consolidation began after the currency pair rebounded off the new 11-year low of 1.1100 that was hit in late January. After that low was established, EUR/USD rose to hit a high of 1.1533 in early February before falling into a tight trading range.

Currently fluctuating above and below the 1.4000 support/resistance level, the currency pair is near the lower extreme of a long and steep downtrend that has been in place since its long-term high just short of 1.4000 in May of 2014.

From that high, EUR/USD has fallen by more than 20% in nine months down to the noted 1.1100 low in late January.

The bearish trend bias and downside pressure continue to remain strong within the current consolidation pattern. If the currency pair continues its entrenched stair-step descent below 1.1100, the next major support target to the downside resides around the 1.0800 level, last hit in September of 2003.

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