- Mario Draghi’s speech earlier today was uneventful.
- Italy’s decision to consider lower deficit budget target has eased tension.
- Possible head and shoulder reversal pattern in development.
During the last couple of days the EURUSD pair has been consolidating in a narrower range. Earlier today during London session hours, the ECB president made his speech regarding the European growth slowdown. He mentioned that is part of a normal progression towards long term growth.
Meanwhile, Italy has agreed to consider a lower budget deficit for 2019 after talks with the EU.
EURUSD has been fluctuating in a ever narrowing range since November 12th lows forming the a symmetrical triangle pattern that could also be the right shoulder of bearish reversal head and shoulders pattern.
A close above the neckline is needed to confirm the pattern. Meanwhile, the rise in volume as the EURUSD corrected from its previous low that forms the head of the pattern is worth mentioning. This is usually a good sing increasing the probabilities for the pattern.