EURUSD 1.1193 – Bearish – Potentially forms a 3-day rising wedge

EURUSD extends the rebound off the 1.1086 low (September 3, 2015) to retrace near 61.8% of the 1.1331/1.1086 fall, and form a 3-day rising wedge. A rising wedge in a down move typically resolves bearishly. A breakdown below the 1.1153 support (September 8, 2015 low) is needed to confirm the bearish pattern and extend losses towards 1.1086 next. However, an upside push above the 1.1230 (September 8, 2015 high) would dampen the bearish bias and suggest basing for 1.1272 (76.4% retracement of the 1.1331/1.1086 fall) and then 1.1331 (September 1, 2015 lower high), just beneath the range trendline (linking the Feb/May/Jun highs).

Outlook:
Short term: bearish
Long term: neutral