EURUSD Outlook
Higher timeframes are looking still bearish for EURUSD with a double top formation on the daily chart and with yesterday's candle closing as a bearish engulfing.
Price is at a key inflection point right now which coincides with the double bottom's neckline, showing strong support at the 1.1705 area.
We can see how the intraday has been forming a descending channel Structure, which may have caused the bearish trend to lose some steam. Now until the upper boundary of this descending channel is broken to the upside, it makes more sense to look for short opportunities than to go long.
I have highlighted the main areas that might act as resistance for price.
Ideally a break ant retest of the main support area at 1.1705 would give us the less risky entry, however any good rejection of the resistances above with enough volume alongside solid candlestick formations, may give a good short term trade with a good R:Rw to recent lows.
Price is at a key inflection point right now which coincides with the double bottom's neckline, showing strong support at the 1.1705 area.
We can see how the intraday has been forming a descending channel Structure, which may have caused the bearish trend to lose some steam. Now until the upper boundary of this descending channel is broken to the upside, it makes more sense to look for short opportunities than to go long.
I have highlighted the main areas that might act as resistance for price.
Ideally a break ant retest of the main support area at 1.1705 would give us the less risky entry, however any good rejection of the resistances above with enough volume alongside solid candlestick formations, may give a good short term trade with a good R:Rw to recent lows.
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