Affiliate Disclosure
Affiliate Disclosure adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

EUR/USD Signal: Outlook as the Rising Wedge Pattern Forms

Anticipate bearish breakout with rising wedge pattern. Sell with target at 1.0700, stop-loss at 1.0920; bullish scenario sets buy-stop at 1.0825.

Bearish view

  • Sell the EUR/USD pair and set a take-profit at 1.0700.
  • Add a stop-loss at 1.0920.
  • Timeline: 1-2 days.

Bullish view

  • Set a buy-stop at 1.0825 and a take-profit at 1.0915.
  • Add a stop-loss at 1.0780.

EUR/USD Signal Today - 22/02: Rising Wedge Signals Outlook (Graph)

The EUR/USD exchange rate reacted mildly to the first Fed minutes of the year and as traders refocused on the upcoming European inflation and PMI numbers. It was trading at 1.0822, where it has been stuck at in the past few days. This price is substantially higher than this month’s low of 1.0693.

European inflation and PMI numbers

The Federal Reserve published minutes of the last meeting on Wednesday. These minutes revealed that most officials remained cautious about cutting interest too soon since inflation remains much higher than the 2% target.

Before the meeting, economic numbers were showing that inflation was moving in the right direction. However, recently, numbers have shown that inflation remains stubbornly high. The most recent data showed that the headline CPI rose to 3.1% in January while core CPI rose to 3.8%.

Therefore, most market participants have ruled out cutting interest rates in March as they were expecting a few months before that. Most of them expect the Fed will start cutting rates either in its meeting in May or June.

The EUR/USD pair will have several key events on Thursday. One of the most important ones is the January inflation report. Economists expect the data to show that the headline CPI dropped by 0.1% in January leading to a YoY increase of 2.8%.

Top Forex Brokers

    Core inflation, on the other hand, is expected to drop by 0.9% on a MoM basis and by 3.3% on a YoY basis. These numbers mean that Europe’s economy will move to the 2% target in the coming months.

    The other key data will come from S&P Global, which will publish the latest services and manufacturing PMI numbers. Economists expect the data to reveal that the bloc’s manufacturing PMI rose to 47 while the services PMI rose slightly to 48.8.

    In the US, economists believe that the two rose to 50.5 and 52.4, respectively. The other important data will be the latest existing home sales numbers.

    EUR/USD technical analysis

    The EUR/USD exchange rate has drifted upwards in the past few days. It has moved slightly above the key resistance point at 1.0805, the highest swing on February 12th. The pair has risen above the 23.6% retracement point.

    Further, the 25-period and 50-period moving averages have made a bullish crossover. The pair has also formed a rising wedge pattern, which is a bearish sign. This wedge is nearing the confluence level. Therefore, the pair will likely have a bearish breakout in the coming days, with the next point to watch being at 1.0700.

    Ready to trade our free Forex signals? Here are the best Forex brokers to choose from. 

    Crispus Nyaga
    About Crispus Nyaga
    Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube,, and Invezz. In his free time, he likes watching golf and spending time with his wife and child.

    Most Visited Forex Broker Reviews