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EUR/USD: Does the Bear find its resistance?

EagleFX

EUR/USD produced a bearish engulfing candle in the daily chart yesterday. The price had a rejection at a double top resistance, which suggests that it may make a bearish reversal. The last swing low allows the price to make a good bearish wave too. Major intraday charts seem to be getting ready to make a bearish move. Thus, the pair may end up producing a bearish candle in the daily chart today.

Chart 1 EUR/USD Daily Chart


The chart shows that the price had a rejection at 1.14320 and made a bearish move. Upon finding its support, the price headed towards the North again and produced a bearish engulfing candle at 1.14320. This may attract the sellers to go short in the pair below yesterday’s lowest low. The price may find its next support around 1.11670. On the other hand, if the price breaches through the level of resistance, it may head towards the North upon breakout confirmation. The price may find its next resistance around 1.16000.

Chart 2 EUR/USD H4 Chart


The chart shows that the price had a rejection at the level of 1.14450 twice. At the second bounce, it produced a doji followed by a bearish engulfing candle. It has been in consolidation. If the chart produces a bearish reversal candle, the sellers may go short below consolidation support. The price may find its next support around 1.13250. On the contrary, if the chart produces a bullish engulfing candle at consolidation support, it may find its next resistance around 1.14450.

Chart 3 EUR/USD H1 Chart


The chart shows that the price had a rejection at 1.14450 and produced an evening star. It headed towards the South and found its support at 1.13800. The price has been in consolidation. The sellers may wait for the price to make a breakout at 1.13800 and go short in the pair. The price may find its next support at 1.13500. On the contrary, if the level produces a bullish reversal candle and makes a bullish breakout at 1.13935, the price may head towards the North and find its next resistance 1.14150.

The daily, the H4, and the H1 charts look good for the bear. The daily chart’s next support allows the price to make a long bearish move as well. Thus, the pair may end up producing a bearish candle in the daily chart. One more bearish candle from here may drive the price towards the South with more bearish momentum.

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