EURUSD has been moving in a long-term bearish trend. Currently, the price is moving within a bearish flag channel from the new low of 1.0350. As we forecasted in our previous EURUSD analysis, the price fell from 1.0750 resistance area to retest the support level of 1.0650, then followed by a rise back to the 1.0750. From the chart, we can see a neckline which has been created at 1.0650 level.
The price was rejected from the 1.0750 resistance level, forming a bearish engulfing candlestick pattern in the 4-hour chart. We can also spot a bearish divergence in RSI . Therefore, we will carefully observe the price action to see if a reversal pattern would be formed.
If price breaks above the 1.0750 level, then the next resistance area is the 1.0800 level.
For a price reversal, the price needs to at least break below the neckline level of 1.0650. A potential head and shoulder pattern could be created if bear takes over the place.
Check out our recent trading idea below :)
The price was rejected from the 1.0750 resistance level, forming a bearish engulfing candlestick pattern in the 4-hour chart. We can also spot a bearish divergence in RSI . Therefore, we will carefully observe the price action to see if a reversal pattern would be formed.
If price breaks above the 1.0750 level, then the next resistance area is the 1.0800 level.
For a price reversal, the price needs to at least break below the neckline level of 1.0650. A potential head and shoulder pattern could be created if bear takes over the place.
Check out our recent trading idea below :)
