Price is slowly forming a wedge on the hourly chart
The dollar was the lead gainer in trading overnight but EUR/USD buyers have managed to stay in near-term control despite that. Price moved towards the swing high area (resistance-turned-support) around 1.1535-40 and stalled around there before tracking higher.
The overnight lows failed to test the 100-hour MA (red line) and that continues to lend a near-term bias favouring buyers. But the coast isn't clear just yet.
Since the track lower, price has been moving higher but it has been respecting a near-term trendline formed from this week's price action. Couple that with a downwards trendline from the topside seen this week, a wedge pattern can be seen and the pair now looks set for a breakout - one form or another.
As with most wedges, the trade is to go with the break. But towards the downside, there must be more conviction by sellers to break below the 100-hour MA before further downside is seen. For buyers, it is all about trying to hold a move above 1.1600 and clear resistance at 1.1628. Additionally, there is also added resistance from the 200-bar MA @ 1.1590 in the 4-hourly chart to the upside:
