EUR/AUD 1H Chart: Rising Wedge
- The common European currency is trading against the Australian Dollar in a rising wedge formation.
- The current pattern started to form right after the currency pair left an ascending triangle and unsuccessfully tried to build a short-term channel up along the 55-hour SMA.
- Despite all attempts to break to the bottom, the 20-hour SMA did not let the pair to do that. As a result, it started to huddle to the upper edge and, thus, formed a rising wedge.
- From technical perspective, by the second half of the day the pair is expected to leave the formation to the downside.
- By the way, the front edge of the pattern coincides with the weekly R3 at 1.5001, which basically sets the upper limit for potential surge in the next two-three days.
