The Euro traded near the previously active long term ascending channel pattern’s lower trend line on Wednesday against the US Dollar. However, that ended, as soon as the 55-hour simple moving average moved in from the upside to provide resistance. On Thursday morning it could be observed that every candle since then has been red. The Euro is continuing its decline against the Greenback.
In addition, it can be seen that the currency exchange rate made another confirmation of the lower trend line of the descending channel pattern. The pattern was discovered only yesterday. It can be assumed that it will guide the rate lower until a new long term pattern reveals itself.
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The previous long term support line continued to provide resistance to the currency exchange rate in the previous trading session, as it stopped a rebound of the EUR/USD pair.
On Friday morning the currency pair was declining after the encounter of the just mentioned resistance line. It was about to face the support of the 55-hour SMA, which as located near the 1.1750 mark.
Meanwhile, the main focus should be on the fact that an ascending channel pattern was revealed during Thursday’s trading session. The pattern’s lower trend line provides guidance for the ones, who want to know, where a rebound will occur.
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EUR/USD patterns get adjusted
The recent surge of the Euro against the US Dollar to the 1.1850 mark has forces a review of the situation of the pair. Both, short term and medium term patterns were adjusted.
After the adjustment the medium term descending channel pattern is with a lesser incline than previously thought. Meanwhile, the junior patter seems to be still holding. However, in the near future it will become obsolete.
All in all, the forecast of a decline of the pair remains in force. Although, in the next 24 hours the currency pair will face the support of the 55 and 100–hour SMAs together with the weekly PP in a range from 1.1780 to 1.1760.
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Most likely a new trading idea will be created and posted on Tuesday morning.