EUR/USD Technical Analysis: Teasing falling wedge breakout

Omkar Godbole FXStreet Contributor

The EUR/USD is attempting a break above the upper edge of the falling wedge at a time when the treasury yields are looking toppy. The wedge breakout, if confirmed, would confirm a bearish-to-bullish trend change.

Daily Chart

As can be seen, the pair is chipping away the wedge hurdle of 1.1338. A daily close above that level would confirm a breakout - the sell-off from the September high of 1.1815 has ended and the bulls have regained control.
The move, if backed by a double bottom bearish reversal in the US 10-year treasury yield, could yield a stronger rally toward 1.1586 (61.8% Fib R of Sept/Nov drop).

Weekly Chart

The falling wedge breakout, if confirmed in the daily, would validate the pair's quick recovery from below 200-week MA of 1.1308. Watch how a similar looking weekly candle in August was followed by a rally to highs above 1.18.
A convincing close below the 200-week MA today would be bad news for the Euro bulls.

EUR/USD

Overview:
    Last Price: 1.1339
    Daily change: 7.0 pips
    Daily change: 0.0618%
    Daily Open: 1.1332
Trends:
    Daily SMA20: 1.1379
    Daily SMA50: 1.1515
    Daily SMA100: 1.1566
    Daily SMA200: 1.1819
Levels:
    Daily High: 1.1363
    Daily Low: 1.1271
    Weekly High: 1.15
    Weekly Low: 1.1316
    Monthly High: 1.1625
    Monthly Low: 1.1302
    Daily Fibonacci 38.2%: 1.1328
    Daily Fibonacci 61.8%: 1.1306
    Daily Pivot Point S1: 1.1281
    Daily Pivot Point S2: 1.123
    Daily Pivot Point S3: 1.1189
    Daily Pivot Point R1: 1.1373
    Daily Pivot Point R2: 1.1414
    Daily Pivot Point R3: 1.1466

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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