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13 Aug 2020
EUR/USD Price Analysis: Falling wedge breakout suggests bull revival
- EUR/USD is looking to establish a foothold above 1.18 in Asia.
- The 4-hour chart shows the pullback from recent highs above 1.19 has ended.
EUR/USD is currently chipping away at the psychological hurdle of 1.18, having put in a low of 1.1711 on Wednesday.
The 4-hour chart shows a falling wedge breakout. The pattern comprises converging trendlines connecting lower highs and lower lows. The converging nature of trendlines is considered a sign of weak bearish momentum. As such, the breakout is considered a sign of bullish reversal.
In EUR’s case, it indicates that the pullback from recent highs above 1.19 has ended and the uptrend has resumed. The immediate hurdle is located at 1.1916 (Aug. 6 high). Meanwhile, support is located at 1.1777 (Asian session low), which, if breached, would shift risk in favor of a re-test of a weekly low of 1.1711.
4-hour chart
Trend: Bullish