EUR/USD: Bear Has an Upper Hand amid Bull’s Move

• EUR/USD has been having a bullish correction.
• The pair trades below the simple moving average 30.
• The H1 chart looks bullish approaching at a horizontal resistance.
• Intraday minor charts have been bullish.

EUR/USD- Technical Analysis-H4 Chart

The chart shows that the pair after being bearish found its support around 1.05000 and produced a spinning top. The price then has been heading towards the North with a moderate pace. Since the pair trades below the SMA 30, the sellers may consider it as a bullish correction. As of writing, the pair trades around 1.05530. The price had a strong rejection at this level. Thus, the level may work as a resistance and end up producing a bearish reversal pattern. The sellers may wait for that to go short again in the pair. The price may find its support around 1.04500.

On the other hand, if the price makes a bullish breakout at the resistance level, it may consolidate within the flipped support and the resistance of the SMA 30. The buyers would eagerly wait for the price to make a bullish breakout at the SMA 30 to go long in the pair. The price may find its resistance around 1.06150.

Price Action Analysis- H1 Chart

The chart shows that the level of 1.05530 has been a significant level. As of writing, the pair trades right around that level. The buyers may be waiting for the price to make a bullish breakout followed by a bullish reversal pattern right at that level to go long in the pair. The pair may find its resistance around 1.05800.

On the downside, if the chart produces a bearish engulfing candle, the sellers may go short below 1.05250. It may find its support around the last swing low. A bearish breakout at the swing low may generate more bearish momentum and drive the price towards the South further to make a new lower low.

Considering both charts, it seems that the bear still has an upper hand. Now the question is whether those resistances produce bearish reversal pattern and make the pair bearish or not.

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

Contact and follow Tareq on Twitter: @tareqfpn