The calm has occurred at EURUSD after the period of high volatility. In the last week EURUSD has formed a rising wedge pattern at time-frame H1. In theory that pattern should be broken below. After the breakout return movement should occur and this movement will confirm or deny direction. The nearest target for a falls is located at 1.1020 – 1.1000 area. It has to be noted that such basic patterns could be less efficient on the forex market than on the stock market.
We can see also possibility of further declines at time-frame D1. EURUSD respected uptrend line for 7 months from the date of December 2015. Last month that line was crashed and the price tested it from a bottom. In this perspective it is more likely that EURUSD will fall deeper even to support at 1.0820.
