Today we had major drop in EUR. Is not only against USD, but against most of the other currencies too.

EUR/USD was 1.36.97.

It could be one-day wonder, we saw several times 1.37.60, before
...or...
The major leg down may begin...

We miss this move :-) This is why we going now to to do this middleweek issue.

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I. Wedge in USD index:

Situation is complex now. Currently USD index raised, and now, is a time to "meet" the formal support. It could drop back from it. This will be good buying oportunity, especialy for traders like us :-)

However, is possible the wedge to be "missunderstood", and to be like on the picture.

Pink is where most technicians think the wedge is,
and brown is the new estimation.

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II. Wedge in EUR/USD:

3 days chart:
As EUR began to fall, this means the wedge is done. EUR/USD will fall to about ~1.34. Now there may be a pullback, where we need to enter short.

8 hours chart:
On 8 hours chart we have several trendlines. Blue channel is broken as at clock.

Brown channel is in tact. Pink line is probably the most important. It is parallel to brown channek, is formal resistance, then acted as support. Today this line acted as support again.

Now EUR should rise. How much - I do not know. Only way to estimate (but is still speculations) are the Fibonaci levels:

Levels are 1.37.90 / 75 / 55.

I have feeling we will see 1.38.00 tomorrow, so be prepared :-)

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III. Summary:
(this is not a trading advice)

Be prepared to enter short against the EUR.

Unfortunately the level is unclear.

Probably, best way is to enter @ current levels 1.38.10-1.38.20. However I am not going to do this, but rather will wait till tomorrow.

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Happy trading :)