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EURUSD : Falling Wedge Pattern Signaling a Bullish Trend

EURUSD today gave a pause to its downward rally after the report showed that the preliminary reading of the euro zone manufacturing PMI rose to a two month high reading of 51.9 this month. The services PMI jumped to 54.4.Germany and France are considered the two large economies in the euro zone.  Germany Manufacturing PMI rose to 52.9 beating the economist’s expectation for an increase to 52.2 whereas the manufacturing activity in France contracted to 47.6. The services PMI jumped in both the countries beating the economist’s expectations.

EURUSD : 4 Hour Chart

On the 4 hour chart, the pair found support after the release at 1.3453. There also seems like a falling support and resistance trend line providing support and resistance respectively to the pair forming a falling wedge pattern. A falling wedge gives a bullish signal and the pair might surge from the resistance trend line anytime near the apex of the wedge.

EURUSD : Daily ChartOn the daily chart,the pair seems like facing resistance from the 50 day SMA preventing the pair to rise above it. 

EURUSD : Weekly Chart

If we look at the weekly chart, the pair is currently testing the key support at 1.3470. Breaking this support might pull the pair down to 1.3348. The moving averages are signaling a continuation of uptrend in the weekly chart.