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EUR/USD Challenges 1.19 Support Zone for Next Bearish Breakout

May 08, 2018 10:18


4 hour

The EUR/USD is unable the break above the resistance lines (orange and red) of the downtrend channel. A bearish continuation could send price lower towards the Fibonacci targets of wave 3 (blue) around 1.17-1.18. A bullish breakout above the resistance zone could indicate a bigger retracement to the Fibonacci levels of wave 4 (green). This could be a reversal spot for a downtrend continuation unless price breaks above the 50% Fib at 1.2150 which would make such a wave 4 less likely.

1 hour

The EUR/USD price action is becoming choppier as price is becoming squeezed in between support and resistance trend lines. A break below the green trend line could indicate a continuation of the downtrend whereas a break above resistance (red) could see price move towards the next resistance zone (orange) and Fibs.

Good trading,

Chris Svorcik

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