Red lines- wedge pattern
Blue line- bearish divergence
EURUSD is trading around 1.0620-1.0630 as price is still inside the upward sloping wedge pattern. Short-term trend remains bullish but as we explained in our previous posts, the combination of the wedge pattern and the bearish divergence provide increased chances of a reversal and break down. Support by the wedge pattern is found at 1.0606. Bulls need to defend this level. A break below 1.06 would be an added sign of weakness and will increase chances of a reversal. First pull back target if price breaks down below the wedge pattern, is at the beginning of the wedge at 1.0240-1.0290.
