EUR/USD has turned to the upside again as the DXY drops like a rock in the short term. The currency pair has developed a potential Falling Wedge pattern which could bring an upside reversal.
Still, it’s premature to talk about a potential reversal as long as the pair stays below the downtrend line. Right now we have to focus on the current bounce back.
Technical Analysis!
EUR/USD has found support around the Falling Wedges’s downside line. Its failure to stabilize under the weekly pivot point (1.1799) signaled a potential upwards movement.
The major upside target is at the Falling Wedges’s resistance and at the ascending pitchfork’s median line (ml). Only an upside breakout through the downtrend line could really activate a broader upwards movement.
The bias remains bullish in the short term as long as it stays above the ascending pitchfork’s lower median line (lml).
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