EUR/USD: Bull Makes Correction, Bear Looks for Its Ground

• EUR/USD has been bearish on the H4 chart by obeying the SMA 30.
• The chart shows it has enough space to continue its move.
• The H1 chart has found its resistance at a flipped level.
• Intraday minor charts have been choppy in Tokyo session.

EUR/USD- Technical Analysis- H4 chart

The chart shows that the price has been heading towards the South for a while. It had a bounce at 1.07550 and made a bullish correction. Upon producing a bearish marubozu candle, it resumed its bearish journey again. The level of 1.07220 has worked as a level of support and has driven the price towards the North. The sellers are to wait for the chart to produce a bearish reversal candle to go short in the pair. The price may find its next support around 1.06700.

On the contrary, if the chart continues to make its bearish correction and ends up making a bullish breakout at the SMA 30, the buyers may look to go long upon having breakout confirmation followed by a bullish reversal pattern.

Price Action Analysis- H1 Chart

The chart shows that the price after making a bullish correction has founds its resistance around 1.07720. It produced a bearish inside bar. The sellers on the minor charts have been driving the price towards the South. If it goes like this, it may find its next support at the last swing low. However, if the price goes back to the resistance and produces a strong bearish reversal candle, it may head towards the South with good momentum and make a breakout at the swing low. In that case, the price may find its support around 1.07000.

A breakout at the level of 1.07720 may make the pair get sluggish. Buyers on the H1 chart may not find long opportunities since the chart shows that there are too many barriers to break through to offer long entries with lucrative risk-reward.

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

Contact and follow Tareq on Twitter: @tareqfpn