EURUSD Classic Technical Report 08.27.2012
Prices recoiled from resistance at the top of a Rising Wedge pattern carved out since late July to produce a Bearish Engulfing candlestick pattern, hinting a move lower is ahead. Near-term support is in the 1.2364-2442 area, with a break below also taking out the Wedge bottom to mark resumption of the long-term down trend. Alternatively, a break above the Wedge top (now at 1.2580) targets the top of major falling channel encapsulating prices since late August 2011 (1.2681).
Daily Chart - Created Using FXCM Marketscope 2.0
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