The EURUSD Chart Technical outlook is attempting to break the wedge resistance
USD Basket (non-weighted) – moving lower within a corrective channel formation. Trading close to channel support at 293. The intraday stance would be to sell into rallies close to 312.
EUR basket – mixed and volatile trading after completing the bullish Crab pattern. Resistance is located at 597.
Correlation studies would suggest buying into dips for EUR/USD.
EUR/USD – moving higher within the ending wedge pattern. On a break of the trend of lower highs at 1.0883, the measured move target is 1.1000. Yesterday’s strong buying pressure has left Marabuzo support at 1.0845 (the midpoint from the open and close of a strong bullish candle).
Conclusion: the bias is bullish but there is ample scope for a correction to the downside. With yesterday’s Marabuzo support lining up with the previous swing low from Jan 17, I look to 1.0845 to attract buying interest.
Resistance: 1.0883 (lower highs), 1.0932 (swing high), 1.1000 (measured move)
*Support: 1.08
