EUR/USD Bearish Reversal After Strong Rejection at 1.13

Chris Svorcik Elite CurrenSea

The EUR/USD made a final push higher towards the key decision zone of 1.1250-1.1325, which is critical for a bearish bounce or bullish reversal breakout. The bearish rejection yesterday at 1.13 makes a continuation lower the most likely scenario.

EUR/USD

4 hour

The EUR/USD daily chart is showing a strong bearish candlestick pattern but a break below the support trend line (blue) is needed as a confirmation for more downside. A bullish bounce could see price retest the resistance zone (red line) first, which could act as a head and shoulders level on the lower time frame as well. Price must break above the 1.1310-1.1325 resistance zone before an uptrend is possible (green arrow).

1 hour

The EUR/USD could test the Fibonacci retracement levels of wave 2 vs 1. Especially the 61.8% Fib level could be a strong resistance area due to the potential head and shoulders reversal chart pattern. A bearish bounce and break below the support line (blue) would confirm the bearish wave pattern whereas a break above the 100% Fib level indicates an uptrend.

The analysis has been done with the CAMMACD.MTF template.

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Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

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