The start of the week has seen more upward pressure in EURUSD. The only economic release of any note today is the Eurozone CPI (Consumer Price Index inflation figures). The data is due out at 10am UK time. Can this upward pressure in the Euro continue from here?
The USD Index has broken from a wedge formation to the downside. We believe this is bearish for the long-term bias and that further downside can be expected. However, we do have a 161.8% extension level at 97.04. We also have the daily Ichimoku Cloud at 97.03, therefore there is ample scope for a correction to the upside. Resistance is located at 97.50 with reverse trend line at 97.57.
In EURUSD, there are two wedge formations that we have highlighted. We have broken the first wedge pattern (green) to the upside. This has a measured move target of 1.1448. There is bespoke resistance seen at 1.1438 (prime target). The outside wedge (pink dotted) has a trend of lower highs at 1.1281. Is there scope for a correction lower? There is support today at 1.1210-1.1190.