EUR/USD: Bearish Wedge is Still Capping Prices
EUR/USD has declined after touching the high of its rising wedge (bearish technical pattern). Support can be found at 1.2466 (28/08/2012 low, see also up trendline).
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 close to the resistance at 1.2748 to initiate a new short EUR position.