EUR/USD Is Consolidating

Although the result of the Italian referendum on Sunday night pushed EUR/USD to the downside and the pair dropped towards the support at 1.0500 that drop was relatively short-lived because it formed a hammer candlestick on the four-hour time-frame and started steadily moving to the upside for the rest of the day. Today the pair has been consolidating sideways under the resistance at 1.0800 and in the process of the consolidation it has been forming several candlesticks on the four-hour time-frame again, such as shooting stars, doji and spinning tops that could be a signal for an impending move to the downside towards the support at 1.0680, which coincides with the (MA)89 indicator on the same time frame.

Alternately, the pair could continue moving to the upside if it breaks above 1.0800 and reach its next target at 1.0880 – 1.0900.