15th August: EUR\USD Weekly Lookout

Weekly analysis on the EUR\USD shows signs of weakening of the uptrend. On daily charts we can clearly see a Broadening Wedge which is a reversal chart pattern. Unlike the standard channel which consists of two parallel trendlines, the wedge consists of two expanding (or converging) trendlines which signal irregularities at the trend. Breakout down will signal the beginning of downtrend and end of the uptrend.

The wedge also serves as a asymmetric should for an Head & Shoulders pattern which is a very strong reversal pattern.