Sasha Singh
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EURUSD : Falling Wedge Breakout

EUR has been under pressure since ECB governing council member and Bundesbank Chief Jens Weidmann said on March 25 that negative interest rate would be more appropriate to bring down the higher exchange rates. Yesterday ECB policymakers Ewald Nowotny and Yves Mersch said that more monetary easing from the central bank is not coming soon which surged EURUSD.

On the 4 hour chart of EURUSD we can see that the pair found support from the support trend line of the falling wedge yesterday and surged. Falling wedge gives a bullish signal and the pair thus broke the resistance trend line of the wedge and reversed its uptrend. The pair found resistance at 1.3809. However seems like there is again a bullish trend formation on the chart. We can see an ascending triangle on the chart according to which the pair should breakout from the resistance at 1.3809 once it reaches the apex. Also 200 day SMA seems like acting as a resistance for the pair from past few sessions.