- EUR/USD bears need to firm up at this juncture.
- Bears eye a break of 1.0430 to open the path for lower for longer.
EUR/USD has been attempting to move in on the 1.06 areas this week but the bears are putting up strong resistance on the way there. The prospects of a run to parity remain on the table in a strong US dollar environment. However, the bears need to commit to the cause at this juncture or they could face strong opposition in a period of price imbalance mitigation in the late 1.06 and early 1.07 areas. The following illustrates the market structure and price action across the time frame from a bearish bias and perspective.
EUR/USD monthly chart
The monthly outlook sees the price testing a critical support area which gurdas a run towards parity.
EUR/USD weekly chart
The weekly chart shows that the price is being rejected at a prior structure around a 61.8% Fibonacci area.
EUR/USD daily chart
The price is bounded by support and resistance on the daily chart which could see some sideways price action in the days ahead. However, a breakout one way or another would be definitive for the foreseeable future.
EUR/USD H4 chart
If the bears manage to break the four-hour trendline support, then this could open the barriers for a move below the 1.0430 support and on to lower lows in the bearish cycle.
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