We began last week with the assertion that the Euro price action had formed a Falling Wedge bullish reversal formation and was positioned for a bullish correction against the US dollar. This outlook began to be validated mid-week as resistance at the Wedge's upper boundary was overcome. Current positioning shows EURUSD has issued a textbook pull-back to re-test resistance-turned-support at the Wedge top and the bulls now look ready to take the reins in earnest. The first layer of resistance stands near the 1.33 level, marked by the 38.2% Fibonacci retracement of the 09/22-10/27 decline.

Created using FX Trek IntelliChart - Prepared by Ilya Spivak