EUR/USD Price Analysis: Bears eye a run to 0.9950 on a break of trendline support
|- EUR/USD bears eye a break of key hourly trendline support.
- 0.9950 is beckoning on a break below 1.0035.
Market sentiment bounced on Friday night, despite more hawkish rhetoric from Fed speakers and the euro subsequently rallied. However, the following illustrates the potential for a downside continuation while below the 1.0300 level.
EUR/USD weekly chart
The weekly chart shows that the price is correcting into the neckline of the M-formation. While there is scope for a deeper correction towards a 61.8% or even the 78.6% Fibonacci levels, the 4-hour time frame's harmonic pattern is bearish as follows:
The price has opened strongly bid in early Asia but while below D and 1.0120, there is the potential for further downside and a deeper correction of the 4-hour impulse to challenge 1.0000.
From a 1 hour perspective, the key support is seen at 1.0035 which guards a run down towards 0.9950. In such a scenario, the trendline support will give way for the grind lower.
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 and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.