The EURUSD is finding resistance at a number of key levels and has created a wedge pattern. A very old level at 1.120, a Brexit key level at 1.11725 and yearly PP around 1.115 and the 50 day sma. We see a good rejection candle off these levels (see circled area). The TDI is showing a steady increase and all the RSI lines are above the 50% level. The BBands have contracted indicating the squeeze before the breakout. Volume at this level is also increasing showing the intent for the move to come. So this week I will be looking for the break up to complete the larger corrective structure at point E around the 16th of October. However, with the American election coming up we may see a lot more sideways action and only reaching point E around the beginning of November. Well let see what this week holds.
