EUR/USD: High of Rising Wedge Challenged
EUR/USD is testing the high of its rising wedge (a bearish technical pattern). A failure to move higher would be a first sign of weakness for EUR. Price resistances are given by the down trendline and by the 18 June high (i.e. 1.2748).
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.