On Friday, the EUR/USD currency pair revealed a rising wedge pattern. During today’s morning, the pair re-tested the 1.1860 level. From a theoretical point of view, it is likely that the exchange rate could extend gains within the given pattern in the short term. In this case the rate could target the resistance level formed by the weekly R1 and the 2020 high at 1.1903.
In the meantime, it is unlikely that some downside potential could prevail in the market due to the support area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.1800/1.1830 area.
