EUR/USD: Bear Has a Strong Fence Ahead

• EUR/USD consolidated around the SMA 30’s resistance on the H4 chart.
• The pair had its second bounce at 1.08900.
• The H1 chart looks slightly bullish biased.
• Intraday minor charts have been choppy.

EUR/USD- Technical Analysis- H4 chart

The chart shows that the price after being bearish had a bounce at 1.08900 earlier. It then found its horizontal resistance and made another bearish move, but had its second bounce to head towards the North again. The simple moving average 30 has been working as a resistance. The price has been on consolidation around the moving average. It may attract the sellers to look for short opportunities. However, the horizontal level 1.08900 may hold the price as a level of support again. A breakout below the level may drive the price towards the South. The price may find its next support around 1.07800.

On the upside, if the price breaches the SMA 30’s resistance, the buyers may push the price towards the North. It may find its next resistance around 1.10300. The horizontal level may make it bullish too if it holds the price and ends up producing a bullish reversal pattern.

Price Action Analysis- H1 Chart

The chart shows that the price has been roaming around 1.09300. So far, the level looks good to hold the price as a support. The buyers may keep their eyes on the pair to go long upon having bullish reversal signal. The price may find its next resistance around 1.10000.

A bearish breakout at the level of 1.09300 may make the pair bearish and drive it towards the South. In that case, it may find its support around 1.08800.

Considering both charts, it seems that the next breakout is going to be a crucial one. Particularly, if the price makes breakout at the last swing low, the pair may make a long bearish move both on the H4 and the H1 chart.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn