Yesterday, we saw the Euro positioned in a Falling Wedge formation confirmed by divergence with the RSI oscillator. We suggested that this pointed to an imminent bullish correction to offer more advantageous risk-reward parameters for a short position to take advantage of the long term bearish EURUSD trend. Today's price action validated our analysis as the pair broke through Wedge resistance. We will now look for a selling opporunity on a test of the downward-sloping trend line established from the high in mid-July.

For a complete analysis of all the forex major currencies, check out the Candlestick Weekly Report.