Technical analysis of EUR/USD for August 9, 2017

As we said in our previous post the topping process for EUR/USD is over. As everyone was waiting for the pair to get to 1.20, now everyone was bullish...but the wedge pattern broke to the downside confirming the trend reversal.

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Purple lines - bearish wedge

The price is about to break the 4-hour Kumo (cloud) support. The price is making lower lows and lower highs. Short-term resistance is at 1.1820 and support is at 1.17. My target remains between 1.1550-1.14. EUR/USD is in a corrective phase that is expected to push price towards the lower channel boundaries.

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Blue lines - bullish channel

On a daily basis the bearish divergence by the oscillators combined with the break out of the wedge pattern and the daily close below the tenkan-sen (red line indicator), implies that we have started a counter trend move lower. The target is the 15.50-1.14 area. The longer-term trend remains bullish.

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