Euro Breaks Rising Wedge Support
- The single currency has broken through formidable support at 1.3200, confluence of both 100 and 200 EMAs in the hourly chart. The spot rate has now also broken through the rising wedge technical pattern, indicative of further declines in the spot rate. However, for now, consolidation is likely to occur as the exchange rate has found support at 1.3142 (reinforced by the 50% fibonacci retracement level from 1.2997-1.3283).
- Any further declines in the future are dependent on a break of the 1.3100 psychologically important support barrier, which would open scope for a downward move towards medium term targets circa 1.3049 April 8th low.
- However, an upside correction can’t be ruled out in the short term with resistance at the 1.3200 round figure the likely target in the next 24 hours.
- Given the fact that the confluence of moving averages remains intact around the 1.3200, the probability of another leg lower in the Euro versus the US dollar at that barrier remains high.
More technical analysis - Euro Finds Support Ahead Of 1.3200