EURUSD TECHNICAL ANALYSIS: NEUTRAL
- Euro rally fizzles above 1.14 figure, prices drop back to trend support
- Dominant near-term uptrend from May bottom remains intact for now
- Bearish conviction probably needs a break of support near 1.11 mark
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The Euro struggling to build lasting upside momentum against the US Dollar after completing a bullish Falling Wedge chart formation. The rally fizzled after prices put in a Bearish Engulfing candlestick pattern on the four-hour chart as expected, tumbling back to support guiding the rise from lows set in late May.
Still, an unbroken series of higher highs and lows on the daily chart suggests the dominant near-term bias continues to favor gains. With that in mind, a daily close back above immediate resistance at 1.1348 opens the door for a test of yet another test of June’s swing top at 1.1412.
A pivot in sellers’ favor would require a conclusive break of rising trend support, now at 1.1246. That would pave the way for a challenge of Wedge top support-turned-resistance, but a true inspiration for follow-through will probably require taking out the support shelf in the 1.1107-16 area.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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