Yesterday on EUR/USD H4 time frame we had a break down from the short term trend. Price break down and passed through short term support at 1.09028 and hit near second support where daily trend line and H4 support level are crossing.
This is confluence level where buyers were waiting so we have seen a high bounce back to the previous support which now acted as a resistance between 1.09028 and 1.09300.
At the previous H4 trend line we have pinbar which drove the price back down to the daily trend line.
Future Direction
Now we have to wait what the price tells us. If the price break down below short term support at 1.08508 we will have open road to the previous daily support at 1.07825. Before we get there we could have small pullback after breaking down through 1.08508. With the pullback we should watch for bearish price action pattern that will signal to enter into sell order.
If the price make a bullish price action next to confluence level, area between 1.08508 and 1.08700 we can look that the price will first move to 1.09028.
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