EUR/USD - Will it breach the symmetrical triangle on the upside?

The EUR/USD dropped to a low of 1.1892 in Asia before catching bids above the 50-DMA level of 1.1898. The spot clocked a high of 1.1910 levels. The 4-hour chart shows a minor symmetrical triangle pattern. 

Focus on broader market sentiment

Risk aversion could hurt the US dollar and increase demand for the relatively low yielding currencies like the EUR. However, risk assets could stabilize as investors do not expect the North Korea tensions to escalate further. Moreover, the previous escalations have had only temporary impact on the markets. 

A positive action in the European equities could push the S&P 500 futures into the positive territory and lift the US dollar. That would reduce the odds of a bullish symmetrical triangle breakout. On the other hand, heightened risk aversion could yield a broad based sell-off in the US dollar. 

The Eurozone final PMI readings may not move the pair much, unless there is significant upward/downward revision to the preliminary estimates. Later in the day, the focus would shift to speeches from Fed’s Brainard, Kashkari and Kaplan. 

EUR/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik writes- 

“A holiday in the US kept the EUR/USD ranging around the 1.1900 ever since the day started, with the pair settling not far from its daily high of 1.1921, regaining some ground after Friday's slump. The short term picture for the pair is neutral, given that in the 4 hours chart, the price remains above a now horizontal 20 SMA, while technical indicators lack directional strength, barely holding above their mid-lines. The mentioned high is a strong intraday resistance, with some follow-through beyond it exposing the 1.1960 region, en route to 1.2000. Below 1.1822,  last week low, on the other hand, the risk turns towards the downside for this Tuesday.”

4-hour chart\