EUR/USD Price Analysis: Bulls under pressure as bears test commitments at 1.0600
- EUR/USD bears are homing in on the 1.0580s and the bulls will need to show up on the front side of the more dominant trendline support.
- On the upside, we have 1.0700 as a key dailylevel and 1.0790 thereafter as the next level.
As per the prior analysis, EUR/USD Price Analysis: Bears move in and eye a break of 1.0600, the W-formation was stated to have been a reversion pattern whereby bulls would be expected to move in at a discount from the neckline should there be a test of 1.0600 or thereabouts.
EUR/USD prior analysis
This marked 1.0600 as a key support area and 1.0520s below it as being the CPI take-off point.
Thereafter, it was noted that the price was stalling on the bid and the W-formation was anticipated to pull in to the price to test the 1.0620s as a first objective and then to test 1.0600 thereafter. 1.0580 and 1.0520/05 were called as the last defence for a significant bearish correction for the weeks ahead and New Year.
EUR/USD update
The price has broken the first trendline and is homing in on the 1.0580s. The bulls will need to show up on the front side of the more dominant trendline support or face a downside continuation as explained above. On the upside, however, we have 1.0700 as a key level. We have 1.0790 thereafter as the next level.
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.
