EUR/USD technical analysis: Ends five-day losing streak, but bias remains bearish

EUR/USD remains below key support-turned-resistance of 1.1162.
A flag breakdown on the 4-hour chart, if confirmed, would open the doors to levels below 1.10.

Omkar Godbole FXStreet Contributor

EUR/USD gained 0.19% on Wednesday, snapping a five-day losing streak, however, the outlook remains bearish as the pair is trading well below the former support-turned-resistance of 1.1162 (Aug. 12 low).

Further, the pair seems to have created a bear flag pattern on the 4-hour chart. A bear flag is a pause that usually ends up accelerating the preceding sell-off.

A break below 1.1065 would confirm a flag breakdown and create room for a drop to 1.09 (target as per the measured move method).

As of writing, the pair is trading at 1.1093. A 4-hour close above 1.1104 would invalidate the flag pattern. That said, a break above 1.1162 to invalidate the bearish put forward by the range breakdown on Aug. 14.

4-hour chart

Trend: Bearish

Pivot points

1. R3 1.1158
2. R2 1.1133
3. R1 1.1115
PP 1.109
1. S1 1.1072
2. S2 1.1047
3. S3 1.1029

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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