EUR/USD: Potential bullish reversal pattern - Commerzbank

Axel Rudolph, analyst at Commerzbank, suggests that they view the pattern on the weekly chart as a potential bullish reversal pattern for the EUR/USD pair, otherwise known as a falling wedge.

Key Quotes

“We have triple divergence of the weekly RSI which reflects a loss of downside momentum.”

“The market has held support offered by 1.1110 May 2017 low AND we have a 13 Tom DeMark count on the weekly chart.”

“All of these factors imply that a likely bullish reversal is imminent.”

“A weekly close above 1.1346 would complete the reversal pattern and should then trigger gains to the 1.1473 55 week moving average and eventually to the 1.1815 September 2018 high.”