The Falling Wedge Formation Leads to EURUSD Market Pump

Price Analysis – EURUSD Experiences a Market Pump as It Breaks Out of Its Falling Wedge Formation

The EURUSD falling wedge formation has finally led to a market break out. This comes after bears avenged the surge in price from the 1st of April to the 25th of May 2021. EURUSD experienced a precipitous fall after failing to go past the 1.22700 key level and euro fell directly to 1.18400. The buyers then employed the falling wedge formation to cause a reversal in the market.

EURUSD Key Levels

Resistance Levels: 1.19100, 1.19600, 1.20600
Support Levels: 1.17100, 1.17560, 1.18400
The market began cranking and tapering down the wedge. This spanned 27 trading days between the 17th of June 2021 and the 26th of July 2021. EURUSD eventually broke out on the 27th of June 2021. Price broke through the upper border of the wedge and also breached the 1.18400 barrier to go higher. Buyers are therefore successful in their tactics as price has now changed direction to go bullish.

The market has now hit a barrier at 1.19100 which has knocked it back. EURUSD is, however, depending on the support from 1.18400 to attack the 1.19100 barrier again. Currently, the market is displaying a spinning-top candlestick which speaks of market indecision. On the RSI (Relative Strength Index) indicator, the signal line is at 51.34. It has more bias to bounce off the mid-point to continue its climb.

Market Prospects

On the 4-hour chart, the market is seen to have bounced out of the falling wedge utilizing an ascending trend line. There has been a retracement after price hit the 1.19100 resistance. The ascending trend line has managed to keep the price from falling back to the wedge formation.

Bulls are now aiming to have another go at the 1.19100 barrier. If they are successful, the market will go up to 1.19600, else EURUSD might just fall into a range or even dive lower.

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