30.09.201915:26 Forex Analysis & Reviews: EURUSD approaching major wedge support

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EURUSD has started the week with new 2019 lows continuing its down trend. Price is now approaching the lower boundary of a downward sloping wedge pattern and bears should be very cautious as a bounce towards 1.10 is very possible.

Black lines - bullish divergence

Dark blue line - weekly resistance

Weekly resistance is found at 1.1030. As long as price is below that level trend will remain bearish. In the short-term however price is making new lows but the RSI is not following. The 1.09-1.0880 area is important support and there are many chances for a bounce. 1.0980-1.10 is medium-term resistance and bounce target area. Bears should lower their stops to protect gains. Short-term resistance is found at 1.0920 and at 1,0950. Breaking above this level will push prices towards the medium-term resistance area.

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