Following a two-week appreciation against the New Zealand Dollar, the common European currency entered a minor period of price decrease. This movement south has resulted in the formation of a narrow falling wedge. The pair halted near various support levels along the way; however, none was able to reverse the pair to the upside.
The Euro has currently reached the monthly PP which is located near the lower wedge boundary circa 1.64.
Technical indicators suggest that some minor depreciation is still possible during the following trading hours, but the rate should eventually try to recover its losses. This would result in a breakout of the upper wedge boundary within this session.
The upside target could be a resistance cluster formed by the weekly PP, the 38.2% Fibonacci retracement and the 200– and 55-hour SMAs near 1.6560.
The Euro has currently reached the monthly PP which is located near the lower wedge boundary circa 1.64.
Technical indicators suggest that some minor depreciation is still possible during the following trading hours, but the rate should eventually try to recover its losses. This would result in a breakout of the upper wedge boundary within this session.
The upside target could be a resistance cluster formed by the weekly PP, the 38.2% Fibonacci retracement and the 200– and 55-hour SMAs near 1.6560.