Daily Forex Update: EUR/USD
By: Dima Chernovolov
EUR/USD continues to advance inside the Rising Wedge chart pattern, which was recently identified by Autochartist on the daily charts. Autochartist measures the Quality of this Rising Wedge at the 3 bar level – which reflects the slow Initial Trend (2 bars) and below-average Uniformity and Clarity (both rated at the 4 bar level). EUR/USD is expected to rise further inside this Rising Wedge – in line with the earlier upward reversal from the support area described below.
As can be seen from the daily EUR/USD chart below, the price earlier reversed up from the support zone lying between the pivotal support level 1.0860 (former strong resistance level which reversed the pair in December and March, acting as support after it was broken recently) and the 38.2% Fibonacci correction of the upward impulse from April. The proximity of this support area adds to the likelihood EUR/USD will continue to rise inside this chart pattern.
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