EUR/USD 30M Chart: Falling Wedge

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Fundamental volatility on September 2 served as a starting point for the falling wedge pattern in which the EUR/USD currency pair has managed to hold inside of. The rate has just bounced off the upper trend-line of the wedge, and should go on to a bearish movement, however, the consolidation the rate is currently undergoing as well as how far into the pattern the current movements are signal that EUR/USD could be on its way to break the upper trend-line. A break out would cause the rate to hike towards the 1.1458 or 1.1163 mark, just before dipping to touch the trend once again and going on to attempt the 1.1163 mark. On the other hand, strong bearish signals are sent by the 55-period and 200-period SMA crossover, meaning that a downward breakout is still possible and, pressured by various time-frame SMAs, would cause a dive to the 1.1115 level.
© Dukascopy Bank SA
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