The start of the week has seen more upward pressure in EURUSD. The only economic release of note today is the Eurozone CPI (Consumer Price Index inflation figures). This is due at 10am UK time. Can this upward pressure continue?
The USD Index has broken the wedge formation to the downside. This offers a long-term bearish bias. However, we have a 161.8% extension level at 97.04. With the daily Ichimoku Cloud at 97.03, there is ample scope for a correction to the upside. Resistance is located at 97.50 with reverse trend line at 97.57.
EURUSD, there are two wedge formations. We have broken the first (green) to the upside. The measured move target is 1.1448. Bespoke resistance is seen at 1.1438 (prime target). The outside wedge (pink dotted) has a trend of lower highs at 1.1281. Scope for a correction lower? Support today is seen at 1.1210-1.1190