EUR/USD is Showing Bullish Pennant but Watch for Breakout

EUR/USD is waiting for the ECB conference on Thursday. The press conference is about an hour long and has 2 parts – first a prepared statement is read, then the conference is open to press questions. The questions often lead to unscripted answers that create heavy market volatility.

Technically, we can see a range play on 4h charts as the EUR/USD has been bought on dips, but at the same time, sold on rallies too. We can spot a bullish pennant on 4h chart, but the pennant could breakout in both directions. Above 1.2300, 1.2320 and 1.2374 are possible. Below 1.2210 watch for 1.2200 and 1.2170. The current projected range is 1.2170-1.2374. 1.1270 could be a buying opportunity while 1.2374 is a selling opportunity. I reckon the price will stay in the range until the ECB press conference.

.