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EUR/USD could reverse lower
EUR/USD has continued to grind higher, amid a rebound for the pair off the back of this week’s key bearish break below $1.0525. This rally is expected to fall short and turn lower soon enough, yet the question is where will that happen? The safest option is to say the $1.0679 swing high is the best level to be drawing your fibs on, with a break above that level being the event to negate the bearish view.
However, with price in a rising wedge pattern, there is a very good chance we could see a break lower before the $1.0630 shorter-term swing high. As such, look for shorts around the 76.4% retracement, and at $1.0598 for a move back down to $1.0494. With the stochastic overbought and tightening (last bearish cross marked reversal lower), coupled with the price reaching the apex of this bearish wedge, it seems likely the bears will come back soon enough.
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