EUR/USD continued its decline during the first part of Wednesday’s trading session, thus adding additional 45 pips to the 90 pip fall apparent on the previous day. This downside movement reversed north after the pair reaching the weekly S1 at 1.1605. The bottom boundary of the medium-term wedge was adjusted accordingly in order to include this price development.
By the time of this analysis, bulls have managed to push the rate close to the 55– and 100-hour SMAs; thus is expected that these lines are reached during the following hours.
Further advance is unlikely, given that the monthly PP at 1.1680 is likewise strengthened by the 100– and 200-period (4H) SMAs. This resistance cluster should increase downside risks and thus send the Euro lower towards 1.16. Technical indicators support this scenario.
