The EURUSD is testing a MAJOR resistance level.
The EURUSD closed at the downtrend line of the descending wedge that has captured the low volatility of the pair for the last couple years. Today, we tested that resistance near the 1.1140 level. The risk is increasing that we break higher, however I’m not sure there will be a catalyst by the end of the week to do so. However, if you are a long term EUR/USD (or any EUR cross) bear or a US Dollar bull, you should be very careful in the coming days. A break of the 1.1150 level could target the 200DMA immediately and then towards the 1.1400 level which are the highs from early summer. A breakout here could have big implications in many markets (gold, bonds, equities, volatility, etc.)
Blake Morrow
