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EUR/USD: Is the Bear going to take over?

EagleFX

EUR/USD produced a bearish Engulfing candle followed by another bearish candle. The chart then created a bullish Engulfing candle. Yesterday’s bar came out as a bearish Inside Bar. Thus, the pair may make a bearish move if today’s candle closes below consolidation support. The H4 chart looks neutral, but the H1 chart looks bearish. Let us now have a look at these charts.

Chart 1 EUR/USD Daily Chart


The first chart shows that the price made a bullish movement and had a rejection around 1.13980. The price had its second rejection and produced a bearish engulfing candle followed by another bearish one. The level of 1.12300 has been working as a level of support. The level produced a bullish engulfing candle. However, yesterday’s price action came out as a bearish inside bar. This may attract intraday sellers to look for short opportunities. If today’s candlestick closes below the level of 1.12300, the daily sellers may drive the price towards the level of 1.09850.

Chart 2 EUR/USD H4 Chart


The second chart shows that the price headed downwards upon having its second rejection. It had a bounce at 1.12300 and made a bullish move. The pair created a bearish engulfing candle followed by another bearish one. The level of 1.12300 has been working as a level of support again. If the price breaches the level, the sellers may go short and drive the price towards the South. On the other hand, if the price heads towards the North and makes a breakout at 1.13500, the price may find its next resistance around 1.14000.

Chart 3 EUR/USD H1 Chart


The last chart shows that the price made a strong bearish move, followed by a bounce at 1.12300. Then, It has been in consolidation around the level of 1.12740. If the price makes a breakout at 1.12300 upon producing a bearish reversal candle, the sellers may go short and drive the price towards the level of 1.11500. In case of a bullish breakout at 1.12740, the price may not make that big a bullish move. The level of 1.13000 may work as a level of resistance.

Despite producing a bearish inside bar, the daily chart looks bearish biased. The bearish engulfing candle at the double top resistance is the key, which may attract the daily sellers to keep their eyes on the pair. The H1 chart looks good for the sellers, too, and the H4 chart looks neutral. Considering these three charts, the pair may end up producing a bearish candle. If it closes well below consolidation support, the Bear is going to dominate in the pair in the coming days.

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