EUR/RUB 1D Chart: Rising Wedge
Updated
EUR/RUB 1D Chart: Rising Wedge
- The common European currency is appreciating against the Russian Ruble in a four month long ascending channel that has recently began to transform into a rising wedge.
- Formation of the wedge began, when the currency exchange rate tried to slide to the bottom trend-line of the channel for the second time.
- During the yesterday’s trading session the currency rate broke though the monthly and weekly R1 amid the news from the OPEC meeting in St. Petersburg.
- This advance suggests that the rate might reach the monthly R2 at 71.3648 already by end of the month.
- A combination of this pivot point with the pattern’s resistance line should give an impulse strong enough to push it out of the formation.
- Nevertheless, the above scenario might be hampered in case the US will impose new sanctions against Russia, which will lead to a spike of the Ruble at least in the short run.
Trade closed: target reached
The long for the upper trend line of the pattern worked.However, the resulting change in direction had enough momentum to eventually break through the lower trend line of the pattern.
It also has to be mentioned that it seems and is confirmed by this pattern that the EUR/USD trend lines have to be drawn by using the high and low levels of the daily chart rather than opening and closing prices.
Note
Sorry for the mistake. It is EUR/RUB not EUR/USD. Seems like that is enough pattern hunting for the day. ;)
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