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MTrading Team • 2023-07-05

Falling wedge highlights EURUSD as markets await FOMC Minutes

Falling wedge highlights EURUSD as markets await FOMC Minutes

EURUSD pares weekly losses within a fortnight-long falling wedge bullish chart formation ahead of Fed Minutes. The major currency pair’s rebound appears more interesting as it stays beyond the 200-EMA amid a steady RSI (14) line, suggesting further upside. However, the Euro bulls need to carve out the 1.0920 hurdle to confirm the bullish pattern pointing towards the theoretical target of 1.1100. However, the late June high of around 1.1010 and the yearly peak of around 1.1095 may act as an intermediate halt during the anticipated rise.

Meanwhile, a downside break of the 200-EMA, around 1.0865 at the latest, will direct the EURUSD bears toward confronting the 1.0835-30 support confluence comprising the stated wedge’s bottom line and an ascending trend line from late May. It’s worth noting that a clear downside break of 1.0830 will make the Euro pair vulnerable to testing the early June swing high of around 1.0780. Additionally, the quote’s weakness past 1.0780 could direct it to the previous monthly low of near 1.0660.

Overall, the EURUSD pair is likely preparing for a bullish move but the upside needs to cross the 1.0920 resistance and gain support from the dovish Fed Minutes to convince the buyers.

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