By the middle of Wednesday’s trading session the exchange rate was still trading between the 200-hour from the upside near the 129.00 mark and the lower of the ascending pattern near the 128.50 level. However, in the range between those two levels various other levels of significance were located.
The rate will trade horizontally until the rate encounters the support of the lower of the pattern in a way to be forced up higher.
In addition, another development has taken place. The borders of a short term ascending pattern were spotted on Thursday. However, it might be too late to take advantage of the finding.
All in all, it can be expected that the currency exchange rate will continue the surge in the upcoming trading sessions, reveal a new short term ascending pattern and reach for the upper trend line of the dominant channel down pattern.
In accordance with the technical situation the pair is set to continue to surge until it reaches the upper trend line of the long term descending channel pattern near the 129.60 mark. It is highly possible that it will occur by the end of this weeks trading.
However, an important fundamental event is about to occur. Mario Draghi is set to speak publicly at the Jackson Hole symposium at 19:00 GMT. Although, the ECB President has had a rather bullish effect on the Euro in the recent history.
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