Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
Technical Analyst, Saxo Bank Group
The bullish move in EURUSD since early August has formed a rising wedge-like formation. Now, the strength indicator RSI is showing signs of trend exhaustion, suggesting a bearish breakout of the wedge could be imminent.
A break below the lower rising trendline would signal a correction that could take EURUSD down to the 0.382 retracement and support at around 1.1040.
However, if it closes below 1.1040, there could be further downside to the 0.618 retracement at 1.0940.
As described in the previous Technical Update, EURUSD is in a bullish trend both short- and medium-term and break above 1.1202 will very likely demolish the short-term correction scenario and extend the bullish trend
Weekly chart shows how EURUSD has broken bullish out of its symmetrical triangle-like pattern. Now, there is no resistance until around 1.1275, which is also the 0.382 Fibonacci level of the peak to low of the triangle.
Read more here: Technical analysis EURUSD top and reversal USDJPY bottom and reversal
Medium-term, EURUSD is likely to move higher after a short-term correction. If 1.1275 is taken out there is upside potential to 1.1460
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