Euro Upside Potential Dims Ahead of Key Resistance
- The Euro has continued to climb moderately against the US dollar, with the single currency now trading above 1.3200 psychological support. However, any further momentum looks to be in jeopardy as the price action has now formed a nascent rising wedge pattern – indicative of a near term turn in the major.
- With topside ascending trendline resistance (1.3159-1.3222) compounding resistance at 1.3275, probabilities are in favor of a short term correction. Should the notion ring true, initial support at at 1.3232 is likely to be tested follow by a test of 1.3200.
- A break below the round 1.3200 figure could spark further declines, with medium term support targets at 1.3150 likely to be activated.
- Longer term price targets at 1.3375 are only in play should bidders have enough momentum to kick the Euro higher above 1.3300 in the next 24 hours.
More on technical analysis - EURUSD Bidders Seek Higher Ground