Euro breaks a negative pattern's support - technical analysis - 16-12-2015

The pair EUR\USD gave up ground in the intra-day levels, which led it to break a negative technical pattern that formed in the short term, which is the rising wedge as shown in the attached chart, which in turn exposes the pair to negative pressure following its attempts to reach that pattern's price target. The pair halted the decline at the beginning of today after support from the simple moving average for the period 50, which gave it a positive momentum along with an influx of positive signals from relative power indicator; taking thereafter a breather before resuming decline.

 

Therefor we expect a further decline for the pair, targeting the support of 1.0780 as a price target for this forming technical pattern.