The wedge in the Dow Futures could resolves itself to the upside should the global economic recovery continues
A failure to break to the upside would leave the Dow Jones vulnerable to a breakdown & a more significant pullback
The bias is to the upside on the back of improving fundamentals & technicals (see Copper trade)
The economic recovery hasn't been confirmed yet by Dr Copper has it fails to break out of his decade long downtrend. It was challenged last month with no clear break (2 consecutives closes above)
August could be the month of the recovery from COVID or a pullback could signal a longer recovery ahead.
The EURUSD recently bounced off its lifelong support level & is currently testing another multi-decades resistance trendline.
As to where the breakout will occur is another question:
- to the downside as the resistance line as been tested twice against only one for the support one
- to the upside if the recovery from COVID is quicker in Europe than in the U.S.
