- The pair made a strong bearish move to start its trading week
- Has been in bullish correction in the New York session
- The H1 chart traders keep their eyes on flipped resistance to go short
- A bearish trend line is in play in the H1 chart
EUR/USD H4 Chart: Bear Shows its Strength to Start the Week
The pair closed the last week by making a very significant bearish move. The price closed below Simple Moving Average 30. It signified that the Bear might dominate in the pair at least to start its next trading week. As expected, the price made a strong bearish move and closed below the last week’s lowest low. However, in the New York Session, the pair has been bullish in intraday charts. Thus, the sellers may wait for the price to consolidate and produce a bearish reversal pattern to go short in the pair again. The price may find its resistance around 1.09450. The pair may get sluggish around that level and wait for Simple Moving Average 30 to work as a resistance as well to go short from a confluence level. The H4 chart shows that the price may find its next support around 1.08350.
The H1 Chart Looks All Set to Go towards the South
The H1 chart shows that the price has been bearish by obeying a bearish trend line. It had rejections three times. As of writing, the pair trades around the resistance of that trend line again. Thus, the sellers may wait for the price to produce a bearish reversal pattern to go short from here. To add more fuel to it, the H1 chart shows that the level of 1.09300 may work as a flipped level of horizontal resistance. Thus, the sellers may consider it as a confluence level. A confluence level always attracts more traders to take entry. Thus, we may see that the pair makes a strong bearish move from there if things go accordingly.
On the other hand, if the price makes a bullish breakout, the buyers may find long opportunities in the H1 chart. A breakout at confluence level often generates good liquidity.
Considering both charts, the Bear holds the key. A strong bearish reversal pattern at the value area on both charts may drive the price towards the South.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn