The EURUSD has appreciated since its cycle low on 14 July. This bounce has been concurrent with markets rethinking the Fed's aggressiveness. However, Fed officials have clarified that a policy pivot is unlikely. As a result, the daily chart on the left may have charted a rising wedge (converging green lines). This pattern is a bearish continuation pattern. I.e. if it completes and breaksdown, the odds are for a EURUSD decline.
The hourly chart on the right shows bearishness setting up. The EMAs have rolled over and look as if they will cross negatively. Moreover, the stochastic has crossed down. If it drops below the 20 levels and holds, the momentum will apply downside pressure.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.