EUR-USD pair tested the Wedge resistance and pulled back to 1.36
The EUR-USD pared losses in last Friday trading session.
Over the European session, the market broke above a triangle consolidation, and as it entered the US session, tested 1.36, an area of resistance cluster.
There is the support pivot from November 14 now tested as resistance, and the 200-H SMA.
There is 50% retracement of the latest swing from 1.3795 to 1.3420.
The RSI is at 70, which shows the market is not Bearish anymore, but is developing an overbought signal in the near-term.
A break above the 1.36 level, opens a near-term resistance at the 1.3650 level which is 61.8% retracement.
The failure to break above 1.36, and a return back below 1.3550, keeps the Bearish stance in the medium term, although the short-term outlook is range-bound or even slightly Bullish as the EUR-USD is in a corrective stage.
Adding to the cluster of resistance factors, the 4H chart shows that the 1.36 level is also near the a projected wedge resistance.
The RSI in the 4H chart is also approaching 60, which acted as resistance lately, reflecting maintenance of Bearish momentum. On a break of 60, then we have a loss of Bearish momentum, and the market in the medium term could be bottoming for at least sideways market.
The 200-D SMA in the 4H chart should be the 1st target for this scenario, then 1.3850 area, which is near 50% retracement of the wedge. Stay tuned...
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.