EUR/USD (Goldman Sachs): The pair is in a long term triangle, but should resume decline toward 1.0588

In a note published today, the renowned Goldman Sachs bank said that its baseline scenario for the EUR/USD continues to expect a resumption of the downtrend trend in the long term.

"As we have already noted, the EUR/USD has been forming a consolidation triangle since the low of March 2015.

Within this triangle, the pair is increasingly confirming an ABCDE figure, and the pair should in theory resume its decline once this figure is completed, in this case with a target at the triangle low at 1.0588.

However, the pair must not exceed the 1.1576-1.1616 level for this scenario to remain valid. Prior to this, a first warning may be located around 1.1398-1.1427, since a return above this area would greatly diminish the chances of a bearish continuation."