Price Testing the Wedge Floor.

FX:EURUSD   Euro / U.S. Dollar
76 0
Price has tested the lower wedge and is currently (Pre London Opening) seeking support.

Today's solid resistance stands at 1,10 which is the 50% Fib of recent down swing and
more importantly, the lower Kumo Cloud on Daily Timeframe . Note that the Kumo Cloud hasn't been traded
since Oct 22, when price made the strong break lower and started the move to the current low.
Just above, at 1,1030 stands Daily SMA200.
Considering the Intra day Bearish Divergence and the upcoming Fed Rate Decision, it seems unlikely
that Price will break inside the Kumo Cloud at a first test.
But if it breaks above 1,10 , either 1,1030 or the upper wedge around 1,1085 will be a likely bounce level (strong
resistance) with the Weekly R1, the upper Daily Kumo Cloud and also the Daily R2.

On the downside, Weekly PP is yet untraded, which stands just below the lower wedge floor at 1,0940.
Daily S1 at 1,0930. A H4 close below the Weekly PP may trigger the Wedge Pattern, and result in a
retreat of the bulls. Next important support level stands at 1,0890 which is the Monthly R1 and the 38,2 Fib
of recent swing.

Higher timeframe context:
Weekly Kijun Sen at 1,1115 and Weekly lower Kumo Cloud at 1,1215
Monthly R2 at 1,1220

Also note that on Monthly timeframe the MACD stands equal with the trigger line exactly on the signal line. Thus
a dissapointing Fed this week, may trigger a bullish cross, which may cause a deeper retracement on Monthly
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