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Is EURUSD forming a falling wedge?

Monday, May 21, 2018 3:07 PM GMT

U.S. Treasury Secretary Steven Mnuchin said that the U.S trade war with China is “on hold” as both agreed to calm down their tariff threads while they work on a bigger trade agreement. This event helped stock indexes to increase their profits while the U.S. 10-Year Treasury note futures were slightly down. Later today, we are expecting FOMC’s member Hacker and Bostic speeches.

Going to the technicals, EURUSD is basing on a major support level, 1.1717. This is the swing low of 12/12/2017. The Stochastics are flatting while MACD histogram is creating a positive divergence. In addition, the price is moving along the lower side of Andrew’s Pitchfork and it can be our trend guide.


Heading into the hourly timeframe, we have noted a potential falling wedge. It’s symmetrical and developed enough which gives good probabilities as a reversal pattern. However, the price has to “escape” above 1.1765 level to validate the pattern.


(EMA = Exponential Moving Average, SMA = Simple Moving Average, 5EMA = Blue, 21EMA = White, 200SMA = Yellow)

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.







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