© Dukascopy Bank SA
The bears have been in control of the market since March, when the Euro did not have enough strength to overcome 1.56. However, there are signs their reign may soon come to an end, as the currency pair has been recently forming a falling wedge pattern that usually portends a change in the trend.
If the falling resistance line at 1.4566 is broken either in the coming days of after a dip to 1.4451, there will be a good chance of a subsequent up-move towards the Jun 6 high at 1.4950. On the other hand, the technical indicators are still mostly pointing downwards on all three relevant time-frame, suggesting the bearish pressure is unlikely to subside in the nearest future.
© Dukascopy Bank SA