On Monday morning, the EUR/USD broke the lower trend line of the ascending wedge pattern, which guided it last week. However, the event does not necessarily signal a decline.
The rate was more likely to trade sideways, as it had close by the support of a monthly and weekly pivot points and the 100 and 200-hour simple moving averages from 1.0945 to 1.0965.
On the other hand, if the resistance of the 55-hour SMA fails to provide resistance, the rate could surge as high as 1.1028, where the first resistance of the weekly simple pivot points was located at.
