The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
EUR/USD at wedge top
EUR/USD continues to trade higher this morning, with price now having reached the top boundary of a rising wedge seen this week.
Given the gradual nature of this recent rise, accompanied by the fact that a rising wedge is a bearish pattern, there is a good likeliness we will see price return to the bottom of this formation in the coming hours. Thus this pattern is expected to remain until we see a concrete breakout.
The preference is for a bearish breakout, signaled by a close below $1.0651. This would subsequently look towards $1.0628 and $1.0593. Conversely, resistance levels to watch are at $1.0693 and $1.0708.