DE30/EUR 1D Chart: Rebound from 55-day SMA
The index that compiles 30 largest German companies is advancing against the Euro in the long-term rising wedge formation. This pattern started to form two years ago and today consists of two reaction highs and three reaction lows. Consequently, the breakout of the pattern is expected to happen in the Q2 2018.
In the meantime, in the middle of this year the exchange rate started to form new junior ascending channel but due to support provided by the 55-day SMA it began to transform into another rising wedge. As the northern side contains no notable obstacles, the pair is expected to continue climbing to the top, thus ending the year near the 13,600 level. In case of sudden reversal, the above moving average should prevent the pair from making a premature breakout.
The index that compiles 30 largest German companies is advancing against the Euro in the long-term rising wedge formation. This pattern started to form two years ago and today consists of two reaction highs and three reaction lows. Consequently, the breakout of the pattern is expected to happen in the Q2 2018.
In the meantime, in the middle of this year the exchange rate started to form new junior ascending channel but due to support provided by the 55-day SMA it began to transform into another rising wedge. As the northern side contains no notable obstacles, the pair is expected to continue climbing to the top, thus ending the year near the 13,600 level. In case of sudden reversal, the above moving average should prevent the pair from making a premature breakout.
