From 4 – hour plot, we can see that the price has been rising since the beginning of April. For the first 26 days, the upward trend was steady. It could be seen from SAR, that the trend was at the same angle. However, the price has started to fluctuate since May 26th. The wave seemed to shrink, this made up a rising wedge pattern. Although the price was going up, this pattern is still considered a bearish signal. Recently, the price tried to break down, and we can see it has already made one downward breakout.
The rising wedge is not the only bearish signal. As can be seen, the SAR has already made a bearish trend. Although the Ichimoku cloud is still below the price line, it is going up, and I believe it will catch the price line soon. The Bollinger Bands shrunk, so the price touched the upper Bollinger Band, this will also give the price line a resistance. The rising wedge will bring us a downward breakout soon, let’s pay more attention to EURUSD pair.
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