EURUSD Classic Technical Report 08.28.2012
Prices are bouncing to retest the top of a Rising Wedge pattern carved out since late July (1.2587). A break higher targets the top of major falling channel encapsulating prices since late August 2011 (1.2677). Still, a
Bearish Engulfing candlestick pattern continues to argue for a downside bias, with only a close above the setup’s high (1.2588) acting to neutralize. Near-term support remains in the 1.2364-2442 area, with a break below that also taking out the Wedge bottom to mark resumption of the long-term down trend.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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