The EURUSD daily candlestick chart (left) is positioned in its weak channel, between the lower blue and red bands. It was pushed back into the soft area after moving out.
The hourly chart (right) shows a breakdown from an ascending wedge pattern (blue converging lines) at the central pivot resistance. This pattern shows the pressure is to the downside. The trend-following EMAs and momentum based stochastic are looking to cross in response.
The EMAs crossing and building angle and separation to the downside will imply a bearish underlying momentum.
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.