EURUSD has been in a rising wedge since April 29th. Can you trust this pattern? The upward trend has lasted since the end of March, till now, almost two months. Some traders have gotten nervous, it can be seen from the volume. Where do we go from here?
The rising wedge is always considered a breaking signal, downward breaking. And the pattern is about to finish. The upward trend has lasted a long time, will it stop here? What else do we see happening?
The MACD has already started to make a downward trend, which is, at the time, different from the price line. This is no doubt a divergence. As we know, for this kind of divergence, the price would follow the MACD’s signal.
Also, the Ichimoku has been rising rapidly in the past 2 days. Which could also be considered a bearish signal. Once the cloud catches up with the price line, the price could potentially drop.
Other signals come from the Stochastics reaching the oversold area, meaning the price will be volatile and can bounce back anytime. It comes as no surprise that EURUSD is ranging at this time. Expect the unexpected.
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forex, trading conditions, technical analysis, fundamental analysis