The EUR/USD succeeded to recover from its lows at $1.2246 as short covering and repositioning is continuing to take place ahead of next week Federal Reserve monetary policy meeting. Fundamentals have not changed and still in favor for the greenback, so any rally will be capped since the main outlook of the pair remains bearish.
As we have expected, EUR/USD pair continued to move within the falling wedge pattern. After prices found support at $ 1.2246 correspond to the lower line of the pattern bounced back to $1.2447 just few pips away from the upper line of the wedge at $1.2465. However, any further advance toward $1.2465 provides new opportunity to short the pair using tight stop loss order, since the single currency remains under selling pressure due to central banks monetary policies divergence