EUR/USD Ready for Bearish Continuation

0
60
EUR/USD Ready for Bearish Continuation

During the May 27 session, EUR/USD found support at 1.0818 and pulled back. As we begin the May 28 US session, it has tagged 1.0950 and is ready for bearish continuation.

https://

The 4H chart shows that after the 5/27 session consolidation, the RSI is no longer showing oversold condition and price is closing in on a falling trendline. At this point, a break below 1.09 should signal bearish continuation with 1.08-1.0818 as a near-term target.

In the short to medium-term, there is downside risk at least back to the 1.0462-1.0520 lows on the year.

Now, let’s say price does instead holds above 1.09 and climbs above 1.0950, that would open up the 1.10 handle up to the 1.1062 support pivot. Note that in the 1.10-1.1062 area, we also have the 50 and 200-period SMA as additional resistance factors. This should be like the last line of defense for the bearish outlook. Above 1.1062, the EUR/USD’s bearish outlook should be neutralized. Then, above 1.12, the technical picture would become bullish.

Previous Post by Author: Bitcoin – Coiling into a Triangle; Bearish Bias

SHARE
Previous articleTwo North Jersey Legislators Propose law to Regulate Bitcoin Activities, Incentivize Companies
Next articlePound Losing Ground after UK Q1 GDP Data
Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.