Potential Breakout: Higher Highs and Rising Wedge Formation
XAUEUR, the gold-to-euro currency pair, has recently shown signs of a potential bullish breakout. After testing a significant support level at 1740, the pair has started to form a pattern of higher highs and higher lows, indicating a shift in momentum.
Currently, XAUEUR is consolidating within the confines of a rising wedge formation. This technical pattern is characterized by converging trend lines, with the upper trend line sloping at a steeper angle than the lower trend line. Such patterns are often regarded as bullish continuation patterns, suggesting that an upside breakout may be on the horizon.
I will closely watch for a potential breakout above the upper trend line of the rising wedge. If the price manages to breach the upper trend line decisively, it could signify a shift in sentiment and the resumption of an upward trend.
Currently, XAUEUR is consolidating within the confines of a rising wedge formation. This technical pattern is characterized by converging trend lines, with the upper trend line sloping at a steeper angle than the lower trend line. Such patterns are often regarded as bullish continuation patterns, suggesting that an upside breakout may be on the horizon.
I will closely watch for a potential breakout above the upper trend line of the rising wedge. If the price manages to breach the upper trend line decisively, it could signify a shift in sentiment and the resumption of an upward trend.
Trade closed manually:
Setup creatng lower highs. Let's close while the loss is small
Comment:
TP1 hit for those who kept the position. SL at BE