EUR/USD resumed its down trend after breaking through 1.1103 last week, and ActionForex keeps the initial bias on the downside. The next target is the 1.0904 fibonacci level, while 1.1272 resistance keeps the outlook bearish.
EUR/USD's down trend resumed by breaking through 1.1103 last week. ActionForex says the initial bias stays on the downside this week for the 1.0904 fibonacci level.
Above 1.1072 minor resistance, the bias would turn neutral and bring consolidations. However, the outlook stays bearish as long as 1.1272 resistance holds, in case of recovery.
The fall from the 1.2081 medium term top could be reversing the rise from 1.0176, the 2025 low, and probably even the rise from 0.9534, the 2022 low. Therefore a deeper fall should be seen to the 61.8% retracement of 1.0176 to 1.2081 at 1.0904 next. A sustained break there will target 1.0176.
For now, risk stays on the downside as long as 1.1323 support turned resistance holds, in case of a rebound.
In the long term picture, the firm break of the 55 M EMA, now at 1.1243, argues that the rise from 0.9534 completed as a three wave corrective move at 1.2081. That followed a rejection at the 38.2% retracement of 1.6039 to 0.9534 at 1.2019, which is close to the 1.2000 psychological level.
As a result, the long term down trend from the 1.6039 2008 high stays intact. A break of the 0.9534 low is in favor at a later stage.
Source: ActionForex
Trading involves risk.
Risk Disclaimer
