EUR/USD has been sliding since finding resistance at 1.4666 a couple of weeks ago. Let’s follow up on this pair with a trade idea.
The daily chart shows that the 1.4666 resistance was in a previous support/resistance pivot area in January/February, suggesting that this is still a bears market. EUR/USD has fallen below 1.10, which crossed many support factors, including a rising trendline, a support/resistance pivot around 1.1060, and the 100-, and 50-day simple moving averages (SMAs). The market in the short-term appears bearish, while the medium-term mode appears to be neutral-bearish.
In this scenario, we can look for a dip towards the 1.0462-1.0520 lows on the year. A more conservative and less bearish target could be the 1.06 handle. But with the current stance of the ECB vs. the FOMC, we should take on a slightly bearish bias.
If we see a very short-term pullback, we can expect resistance below 1.12. In fact a break above 1.12 would take away the bearish bias. In the 4H hart consider looking for resistance when price pulls back towards 1.11 and the RSI back near 60.
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