EUR/USD Price Analysis: Bears Attacking The Bullish H4 Trendline Support

As per the prior analysis, EUR/USD Price Analysis: Bulls could be running into a trap, it was explained that the breakout traders had been triggered into the market ahead of the Consumer Price Index event. However, the data ignited a rally that took out the 1.0800 and likely hunted down stops in the 1.0850s. This leaves the scope of a reversal on the cards for the days ahead as per the poster CPI technical analysis, EUR/USD prints fresh bull cycle highs, on course for a 5-day rally
 

EUR/USD prior analysis

This puts the downside thesis into play as follows:

(Click on image to enlarge)

The analysis highlighted the downside risks as illustrated above. 
 

EUR/USD update

(Click on image to enlarge)

The price has since stalled and is on track for a re-test of 1.0780s and lower towards 1.0700. However, the bears need to break trendline support on the lower time frames, such as the 4-hour chart as follows:

(Click on image to enlarge)

The M-formation is compelling in this regard. the neckline needs to hold for the open this week to reaffirm the bearish bias and prospects of a break of the trendline and downside potential for the week ahead. 


More By This Author:

GBP/USD Sees An Upside Above 1.2250 Ahead Of UK Inflation Data
Aud/usd Price Analysis: Bullish Breakout On The Cards Or Have We Seen The Highs?
USD/CAD Price Analysis: Stalled Its Rally At The 100-DMA, Dropped Beneath 1.3400

Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.