EUR/USD Trading Above Uptrend Line Support and 1.4300 Level

The current uptrend on the 60 minute EUR/USD chart is starting a transition into a sideways cycle. As this transition occurs prices are trading closer to the uptrend line in support of a short term chart pattern.  The Continuation Rising Wedge is not a large chart pattern at only 16 candles length (Y), but do not dismiss it.  Upon closer inspection there are a number of things that could make this Emerging Chart Pattern alert interesting.

The major psychological level of 1.4300 is located just above the uptrend support line (X).  The breakdown would not only be a wedge reversal trigger but also attract selling pressure as prices break through the "00".  Should buyers decide to support the EUR/USD at the 1.4300 level the breakdown will most likely not be triggered.  Whilst the chart pattern remains intact,  the location of the trigger is perfect for letting the bulls and bears battle it out at this key decision level.  The slowing uptrend is also evident as the Initial Trend reading (Z) is low confirming the transitional market cycle that the 60 minute EUR/USD is entering.  Due to the low Initial Trend, the swing entry is not an ideal entry since a buy should be made when the trend is stronger and the Initial Trend reading higher.  However, there is just as good a chance that the 1.4300 level will hold. Therefore the swing buy would be valid and this should be treated as more of an aggressive long entry.

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