The EURUSD has trended higher since late September, gaining over 1,000 pips from the low.
However, the price action since the November low hints at a potential rising wedge, which is usually a bearish pattern as it suggests exhaustion from bulls.
So far, EURUSD is trading right on the cusp of support. It’s also still holding above the 1.059 key horizontal level, so a short here seems a bit premature.
That said, a 4-hour and daily close below 1.059 would confirm the rising wedge and open up the 1.044 handle and potentially even lower.
This is one of those times when patience is key!
Although the EURUSD rising wedge below looks appealing, the market is still carving higher highs and lows, meaning that the short-term uptrend is alive and well.
So until we see the euro take out 1.059 on a 4-hour closing basis, shorting this market at current levels is quite risky, in my opinion.
But if we do see EURUSD take out support, I think a move to 1.044 and potentially even 1.022 is in the cards.
