Skandinaviska Enskilda Banken made some technical analysis for EUR/USD:
EUR/USD: secondary correction is started "Mr. Market did chose to follow the alternate correction path and prices accordingly moved up in close proximity to the recent correction high, 1.1098. With the rejection lower there’s a relatively high probability that the minor correction now is over and done hence lower levels waiting around the corner. The monthly close below 1.1087 also created a bearish key month reversal (here seen as a bearish continuation pattern given that it didn’t come from a correction high)."
H4 price is on bearish market condition with the ranging within 1.1072 resistance and 1.0896 Fibo support level. Ascending triangle pattern is formed by the price to be crossed from below to above, but the price broke trendline to above for the secondary correction to be started.
| Resistance | Support |
|---|---|
| 1.1072 | 1.0896 |
| 1.1218 | N/A |
If
H4 price will break 1.0896 support level on close H4 bar so the primary bearish will be continuing.
If H4 price will break 1.1072 resistance level so the bear market rally will be started with the good possibility to the reversal of the price movement from the primary bearish to the primary bullish market condition.
If not so we may see the ranging within the levels.
- Recommendation for long: watch close H4 price to break 1.1072 for possible buy trade
- Recommendation
to go short: watch H4 price to break 1.0896 support level for possible sell trade
- Trading Summary: ranging
SUMMARY : bearish
