Yearly Report on FX Market EURUSD

Continuation Wedge (Bearish)

A Continuation Wedge (Bearish) is considered a bearish signal, indicating that the current downtrend may continue.

Description:          A Continuation Wedge (Bearish) consists of two converging trend lines. The trend lines are slanted upward. Unlike the Triangles where the apex is pointed to the right, the apex of this pattern is slanted upwards at an angle. This is because prices edge steadily higher in a converging pattern i.e. there are higher highs and higher lows. A bearish signal occurs when prices break below the lower trendline. Over the weeks or months that this pattern forms the trend appears upwards but the long-term range is still downward.

Underlying Behavior:        In this pattern prices edge steadily higher in a converging pattern i.e. there are higher highs and higher lows indicating that bulls are winning over bears. However, at the breakout point the bears emerge the victors and the price descends.

Pattern Duration: Consider the duration of the pattern and its relationship to your trading time horizons. The duration of the pattern is considered to be an indicator of the duration of the influence of this pattern. The longer the pattern the longer it will take for the price to move to the Target. The shorter the pattern the sooner the price move. If you are considering a short-term trading opportunity, look for a pattern with a short duration. If you are considering a longer-term trading opportunity, look for a pattern with a longer duration.

Target Price:         The target price provides an important indication about the potential price move that this pattern indicates. Consider whether the target price for this pattern is sufficient to provide adequate returns after your costs (such as commissions) have been taken into account. A good rule of thumb is that the target price must indicate a potential return of greater than 5% before a pattern should be considered useful. However you must consider the current price and the volume of shares you intend to trade. Also, check that the target price has not already been achieved.

Expected Target:                EURUSD is forming a wedge pattern formation and is still in continuation of the pattern formation where is still not given a breakdown of point f at 1.3200.  If on higher side resistance of 1.3900 is holding on weekly closing basis, it will move to test the lower support level of 1.3200 and sustain below the same will give the down side breakdown of wedge pattern formation & confirming the lower level target of 1.3200 as first target then sustain below 1.3200 will move it further lower for 1.1755 level.