FX.co ★ EURUSD signaling a pull back is near

EURUSD has managed to reach as high as 1.1495 and is now pulling back. With short-term oscillators at overbought levels and a hyperbolic rise, I believe it is about time that price makes a healthy pull back as a back test of the break out.

Red lines - wedge pattern (broken)

Blue lines - Fibonacci retracement

EURUSD has made a sharp rise from 1.0778 to 1.1495 and I believe it is time to see a pull back towards 1.1230-1.1135 area. There are high chances that the longer-term trend in EURUSD is about to change. However the coming pull back would be crucial to this view.

So far the weekly candlestick is a bearish reversal one but it is still too early to reach conclusions. However it is frequent when at the start of the week the move is negated very soon after, prices chance short-term trend. In this case our strong start of the week was followed by a sharp reversal lower. From 1.1495 price is now trading around 1.1340 and this is a weakness sign that should lead to our anticipated pull back.