For the last few sessions I’ve been pointing out the downward sloping wedge EUR/USD was trading in. A breakout above it gave a bullish signal and the first target has already been reached. Price has reached the Ichimoku cloud resistance in the 4 hour chart and traders I believe should take any profits as a pullback towards 1.06 at least is justified.
There are also signals by the oscillators that also justify a pull back from current levels. First short-term support is at 1.0630 and next at 1.0595. I believe we can see the second support today.
Similar but reverse chart in the US Dollar Index. Here you can read my daily Dollar Index analysis through my partnership with InstaForex. The danger of a Head and Shoulders pattern is still valid as long as price is below the recent high at 101.80. Bears on the other hand want to break below the neckline at 99.20-99 for a targeted move towards 95.
More charts and FX comments will appear below in the comments area for other pairs as well….have a great weekend everyone!
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