EUR/USD: The Rising Wedge Favours a Bearish Bias
EUR/USD is still moving within its rising wedge (a bearish technical pattern). A break of the support at 1.2431 (22/08/2012 low) is needed to suggest the end of the rise that started at 1.2043.
Given the lack of base formation, the recent strength in EUR is seen as a rebound within an underlying downtrend. We would therefore look at signs of weakness coupled with overbought conditions to initiate a new short EUR position.