© Dukascopy Bank SA
As it turns out, this rally is developing into a rising wedge pattern, implying that the currency pair at the moment is facing a strong resistance area and thereby is likely to fall precipitously in the nearest future. Still, for the bearish scenario to materialise, the price has to settle beneath the up-trend support line at 0.9111 that for now remains intact. If this is the case, the rate will be expected to plummet through the closest supports until it again reaches the 200-period SMA at 0.8976.
© Dukascopy Bank SA