- EUR/USD had multiple bounces at 1.08200 on the H4 chart.
- The SMA 30 has been working as a resistance.
- The H1 chart has been bearish heading towards the swing low.
- Intraday minor charts have been choppy.
EUR/USD- Technical Analysis- H4 Chart
The chart shows that the levelof 1.08200 has been working as a support, where the price had bounced thrice. Upon producing a hammar, the price headed towards the SMA 30’s resistance. As expected, the price found its resistance at the SMA 30 and produced a bearish inside bar. Since then, it has been heading towards the South. The sellers may wait for the price to breach the swing low to go short in the pair. A bearish breakout may take the price towards the level of 1.07600.
On the contrary, the buyers must wait for the chart to produce a strong bullish reversal pattern to go long in the pair. A bullish breakout at the SMA 30 may change the scenario. As things stand, it may take time to happen.
Price Action Analysis- H1 Chart
The chart shows that the pair begun its trading with a bearish adjustment. The pair trades below the level of 1.08460, which has been a significant level. As of writing, the price consolidates around it. The sellers may wait for the chart to produce a bearish reversal candle to go short in the pair. The price may find its support around 1.08130.
On the contrary, if the price goes above the level, the buyers may look to go long in the pair and push it towards the last swing high.
Considering both charts, it seems that the pair may head towards the downside and remain bearish for some days. The level of 1.08200 is going to be under the spot light here.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn