EUR/USD retraces wedge selloff
EUR/USD has rallied into the 76.4% retracement following a wedge breakdown earlier in the week. The wedge pattern itself was bearish by nature and the follow up provided a somewhat bearish view. The only worry was that we did not see the $1.0579 support level broken in the follow up and this takes some of the confidence away from the trend reversal.
Price has since rallied into a deep pullback and is turning lower, which brings about a good chance of a downside move. As such, while a bearish view is in place, the additional confidence that would have been afforded by a break below $1.0579 is not there.