EUR/USD Price Analysis: Bulls target a 61.8% Fibo confluence

EUR/USD bulls step in and target a retest of the M-formation's neckline.
Hourly H&S may also be in play for the bullish conviction.

Ross J Burland FXStreet

As per the prior analysis, EUR/USD Price Analysis: Bears need to consider the daily M-formation, the M-formation is in focus.

Prior analysis, daily chart

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:''

Live market analysis

While the target area was achieved, there was always the risk of the price stalling along the way and returning back for a premature test of the prior lows and support due to the M-formation.

An M-formation has a high completion rate in attracting the price back to the neckline of the formation.

From an hourly perspective, the bulls can therefor target a confluence of the area with the 61.8% Fibonacci retracement of the prior daily bearish iumpusle, as follows:

In addition to the M-formation on the daily chart, it is worth noting the bullish Reverse Head & Shoulders on the hourly chart.

Could the formation be a bottoming of the hourly bear trend?

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.