Technical analysis of EUR/USD for August 3, 2017

The EUR/USD is trading inside an upward sloping wedge pattern and inside a longer-term bullish channel. I expect the wedge pattern to break downwards and push price towards the lower channel boundary. The EUR/USD is overbought and diverging.

analytics5982d8f25af8d.png

Purple lines - bearish wedge

Blue lines - bullish channel

The EURUSD is in a bullish trend making higher highs and higher lows. 1.18-1,1780 is important short-term support. Price made a throw-over new high last night but the oscillators did not follow. This is a bearish sign. If support fails, expect the price to move towards the Ichimoku cloud between 1.17-1.1620.

analytics5982dac3beb23.png

Blue lines - bullish channel

Daily trend is bullish. However, with bearish divergence signs even in the daily chart, we should prepare for a move lower towards 1.15-1.14 where the lower channel boundary is found. EURUSD bulls need to be very cautious as the time for a correction is approaching rapidly.

The material has been provided by InstaForex Company - www.instaforex.com