- EUR/USD has been on a strong bearish correction.
- The pair is approaching at a horizontal level, which may hold the price as a support.
- The H1 chart has been bearish and has enough space to make another move.
EUR/USD- Technical Analysis- H4 chart
The chart shows that the pair after being bullish made a strong bearish move. The level of 1.08900 seems to be working as a support. The chart produced a doji candle. It may consolidate here for a while. However, the simple moving average offers still some space for the price to travel towards the downside. The chart also shows that the level of 1.08500 being a significant level may hold the price as a support.
Traders are to keep their eyes on the price action around that level to make trading decisions. If the level produces a bullish reversal pattern, the price may head towards the North and find its resistance around 1.10000.
On the contrary, if the price breaches the level, the sellers may look to go short and drive the price towards the downside. The price may find its next support in that case around 1.07550.
Price Action Analysis- H1 Chart
The chart shows that the price after being bearish has found its support at 1.08900. As of writing, the price has been having a bullish correction. Upon finding its resistance, it may continue its bearish move again. Thus, the sellers may keep their eyes on the pair to get a bearish reversal pattern at the value areas. The price may find its next support around 1.08300.
On the contrary, if the price finds its support again at 1.08900 and ends up producing a double bottom, it may head towards the North and find its resistance at the last swing high at 1.10000.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn