Though it appears that the wedge is broken, last week's daily candle closed with a strong bearish engulfing bar and the interesting element is that the engulfing bar has smacked on the lower line of the wedge.
This is an important piece in the box as it shows another sign that Euro is heading in for another downslide. The daily price action continues to point south while the pair breaks below $1.0922.
We are now looking for the pair to achieve $1.0812 about 100 pips from the current level. How true can this be?
Having encouraged clear of the huge turn level at $1.0922 the euro has yet again begun to loosen up the dollar. The day by day momentum pointers have grabbed again and what resembles an expanding range play beneath $1.0812 is coming to fruition.
This has made the close term standpoint a bit blended as the expanding rally has been flipped on its head afresh. The Stochastic appear to have bottomed and mirror the extent. Looking on the 4 hour intraday diagram an old minor turn at $1.0956 is being tried early today.
- Italian CPI, Italian HICP
- Core CPI , French BTF Auction
- Chicago PMI, Pending Home Sales
- Dallas Fed Manufacturing Business Index, Bill Auction
Area of Interest:
- Resistance at 1.09803 area rejection.
- Bearish engulfing bar reversal closing below the break of trend line.
- Break of the Wedge indicates continuation towards the downside.
- Moving Average 50 level broken and continues to stay below.
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