- EUR/USD has been bearish on the H4 chart.
- The price made a bearish breakout at a very significant level of support.
- The H1 chart may consolidate before making its next move.
- Intraday price action has been bearish but may make bullish corrections.
EUR/USD- Technical Analysis-H4 Chart
The H4 chart shows that the price has been bearish for a long time. It has not been obeying the simple moving average 30 though. It made bullish breakout traded above the SMA 30, but came down again. It signifies that major charts have been very bearish. At the last rejection, the price consolidated around the SMA 30 for quite a while. Then, it made a good bearish move. Notably, it made a bearish breakout at 1.06150. Thus, the sellers may keep their eyes on the pair to go short from the value areas.
On the contrary, the buyers may not make any trading decisions. Until, it produces a strong bullish reversal pattern, the pair may not get bullish.
Price Action Analysis- H1 Chart
The chart shows that the pair made a bearish breakout at 1.06140. As of writing, the price has been heading towards the North to make a bullish correction. The sellers seems to have taken out their profit. They may wait for the price to complete its bullish correction/consolidation followed by a bearish reversal pattern to go short in the pair. The level of 1.06140 may work as a flipped resistance. If that level produces a bearish reversal pattern, the sellers may go short again in the pair and drive the price towards the downside. The price may find its next support around 1.05750. A breakout below that level may make a new lower low. In that case, the price may find its support around 1.05000.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn