- EUR/USD bears are taking control below the 4-hour resistance.
- EUR/USD would be expected to let towards 1.1805/12 and prior daily structure.
As per the prior analysis, EUR/USD bears seeking break of 4-hour support, the euro has indeed melted to the downside following a breach of the 4-hour support.
Prior analysis, daily chart
Bears have been monitoring for a shorting opportunity from within the build-up of lower highs within the daily correction that had been losing momentum in prior sessions.
From a lower time frame, such as the 4-hour chart, bears were monitoring for bearish structure on a break of the support as follows:
Prior 4-hour analysis
''First, the 4-hour support of 1.1920 needs to give first, breaking the 4-hour dynamic supporting line.''
Prior 4-hour analysis, critical support
''While the support holds, there is still a high probability that the price will remain contained between there and resistance in a sideways channel.
However, on the break of support, the bias falls heavily into the bear's hands for a downside extension.''
Live analysis, 4-hour progress
On the break of the 4-hour support, the zone will now be expected to act as resistance and so far it has.
Corrections are stalling below and thus forming a new bearish structure and confirmed resistance between 1.1912/23.
There is now a high probability that the price will continue to melt and make for a daily downside extension towards 1.1805/12 as follows:
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.