For our analysis today we would look at the trader favorite EUR/USD currency pair.
If we look carefully into the chart, we would notice that the EUR/USD has been exhibiting a wedge pattern with an upward slope. The general trend is bullish in the long term. At this point we can predict that the wedge would likely come to an end and drive the price lower, since the pair is already in the overbought area.
Ever since the EUR/USD pair turned toward a bullish kind of movement, we have been seeing the rates touch new highs, and lows have moved up with that. Levels that used to be our targets have now been surpassed, which explains why we have such high support levels at 1.18 and 1.1780. Still, during the night the pair tried to rise more, but the oscillators did not react much, so we expect that some of the momentum has died out for the present time. It is likely a sign that we would see some bearish movement in the next few days. If the EUR/USD falls below the current support, it could sink to lower supports like 1.17, 1.16.
To sum up, although we acknowledge that the general trend for the pair is bullish, we are likely to see some bearish signs today, including a movement towards lower price levels. It is not impossible for the pair to reach as far down as 1.15, or even 1.14.
As of the moment of this article’s publication the pair is trading around 1.1848, and technical indicators are split between different signs, though the greater half of them are indicating a buy. We need to be careful trading this pair today.
