EUR/USD – Moving lower in the wedge

Ian Coleman FXStreet

Technical

Monthly: Trading within a bearish channel formation. Trend line resistance is seen at 1.2355. Levels close to the 38.2% pullback level of 1.2522 (from 1.6038-1.0349) found sellers. The move lower is mixed and volatile common in corrective formations.

Weekly: The RSI (relative strength index) his trading close to 50 highlighting that the major currency pair is non-trend. There is no clear indication that the downward move has come to an end. The 61.8% Fibonacci level is seen at 1.1186.

Daily: Broken out of the channel formation to the downside. A flag formation target would take the pair to 1.1165. The trend of lower lows, and the possible base of an Ending Wedge formation (bullish) is seen at 1.1225. Although the downside may be limited, risk/reward is ample to call a sell trade idea.

We look to Sell at 1.1320

Stop: 1.1400

Targets:1.1165 and 1.1135

Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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