Forex: EUR/USD: Wedge breakout in prospect

on Jul 22, 2013
Listen Monday July 22nd_: The past week’s rally ended 0.98 percent up. Today the daily candle opened at 1.3157, the price has since hit a high at 1.3168 and stumbled to a low of 1.3143, with the pair currently trading at 1.3160.

At the moment the price is testing the upper line of a wedge pattern, which in the event of a breakthrough should send the pair to fresh highs and towards the trendline, coming down from the highs of May 2001. The first obstacle to this target would be the 10 July high of 1.3205. If the descending trendline is broken the next target would be the 19 June high of 1.3415.
The bullish outlook is supported by the MA89 and MA200 floating below the price action on the hourly, four-hour and daily time periods.
Resistances today: 1.3170, 1.3205 and 1.3255.
Supports: 1.3130, 1.3095 and 1.3065.

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