- EUR/USD bears are taking over and eye the trendline support.
- Bulls will need to stay committed above the daily 78.6% Fibo.
As per the prior analysis, EUR/USD Price Analysis: Bulls run into resistance, bears eye trendline support, EUR/USD is turning lower as the following will illustrate:
EUR/USD prior analysis
It was noted that the market had run into the weekly neckline of the M-formation.
On the daily chart, it was noted that we had possible stops above the swing highs that had been left intact, so far. Before a move higher into them, it was argued that a drive to the downside could be in order first. This brought the 38.2% Fibonacci of the bullish impulse on the daily chart into focus as well as the trendline support.
EUR/USD update
The price is moving lower toward the daily trendline support and from the neckline of the weekly M-formation.
From an hourly perspective, the price has broken structure, (BoS) and formed a fresh swing higher. therefore, we can anticipate another bearish impulse towards the trendline support in a 50% mean reversion or a 61.8% Fibonacci retracement of the prior hourly bullish impulse as follows:
A break of the trendline will dilute the bullish thesis but so long as the 78.6% Fibo holds on the daily chart, near 1.0780, a bullish case can still be argued.
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