- EUR/USD is under pressure on a fractal basis and eyes are on a break below 1.15 the figure.
- Day traders will be looking for an optimal entry to scalp the larger move from lower time frames.
EUR/USD is a compelling bearish scenario and the following technical analysis illustrate the various time frames, from the weekly to the H1 charts.
EUR/USD weekly chart
The weekly chart is bearish as the price has already corrected some of the imbalance of price following the weekly bearish impulse. A test into the weekly fractal highs of the spring and summer below 1.15 the figure is in focus.
EUR/USD daily bearish engulfing candle
We have seen a strong momentum candle in the last few days which is yet to lead to a lower low. The price has instead corrected 50% of the imbalance in a phase of mitigation and a retest of liquidity. The price has since been rejected which would now be expected to lead to further downside.
EUR/USD H1 chart
meanwhile, from an intraday trading perspective, the price has corrected a significant portion of the drop and the focus is now back on the downside:
There is now room to go and test the Oct lows in the 1.1520s.
Meanwhile, however, there could be some more correction to go into the 38.2% Fibonacci of the breakout below the trendline that would be expected to act as a counter-trendline on a restest beyond the 38.2%. This would offer a reasonable area for placement of a stop loss to protect short entries in order to target the 1.1560s and beyond.
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