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EUR/USD Stays In A Side Trend After Breaking Out Of Rising Wedge Format

ByAdmirals
Published 01/10/2013, 06:21 AM
Updated 01/31/2022, 02:45 AM
EUR/USD
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Wednesday started with sellers putting constant pressure on a rising wedge support. After few attempts they managed to break it, which caused a minor downswing. Sellers went through 1.3055 support and stayed under this price for some time. The end of the European session was a good time for buyers as they came back to the previous wedge’s support, which is now a major resistance (red line). Yesterday’s session could have been a little surprise for technical traders, as the price did not fall sharply when it broke out of the wedge formation. It should make sellers cautious and worried about the possibility of a false breakout.
<span class=EUR/USD" title="EUR/USD" width="612" height="332">
The trading signal will get clear when investors decide to break one of the major support levels at 1.30 or the currently strongest resistance at 1.3090. As long as the price continues its movement between those two lines, we can talk about a side trend where one of the best possible strategies is to use oscillators such as RSI, CCI or STS, where traders can use overbought/oversold signals.

The nighttime brought us one minor support at 1.3038. The European session on Tuesday started with an upswing that for now stopped just slightly under 1.3065. If the price will not drop sharply in the next few hours, we should expect that buyers will manage to break this level.

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