EUR/USD: The Bear Eyes to Break Last Week’s Low

• EUR/USD has been bearish on the H4 chart.
• The pair trades around last week are low.
• Intraday price action has been choppy.

EUR/USD- Technical Analysis-H4 Chart

The pair after being bearish found its support around 1.07700 and made a bullish move. On its way, it breached the Simple Moving Average 30 and traded above that for a while. However, the price has breached the SMA 30 again. As of writing, the pair traded below that moving average. Thus, sellers may keep their eyes to go short on the pair from value areas. The pair trades around last week’s low, which has potential to hold the price as a support and push the price towards the North. However, if the price breaches the level, the sellers may be keen to go short on the pair and drive the price towards the South. The price may find its next resistance around 1.06680.

On the upside, if the level holds the price and makes a breakout at the SMA 30, the bull may take over and push the price towards the North.

Price Action Analysis H1 Chart

The chart shows that the price has been bearish by obeying a trend line. At the second rejection, it produced a bearish inside bar followed by a massive bearish candle. As expected, the price found its support around 1.07700, where it had a bounce earlier. It pushed the price towards the North as well. A breakout below 1.07700 may add fuel to its bearish move. However, if the support continues to push the price towards the North, trend line’s resistance may come into play and drive the price towards the South again. The sellers may keep their eyes on the trend line’s resistance to get a strong bearish reversal pattern to go short. The price may find its next support around 1.07000.

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

Contact and follow Tareq on Twitter: @tareqfpn