EUR/USD's break of 1.3911 minor support flips intraday bias back to the downside and put focus on 1.3793 cluster support (38.2% retracement of 1.2884 to 1.4337 at 1.3782). As mentioned before, firm break of 1.3793 will confirm rise from 1.2884 has completed at 1.4337, in form of a head and shoulder top (ls: 1.4049, h: 1.4337, rs: 1.4171). In such case deeper fall should be seen to channel support at 1.3327 next. On the upside, though, note that a break of 1.4171 will dampen the head and shoulder case and argue that price actions from 1.4337 are merely consolidation in larger up rally. Another rise to above 1.4337 should then be seen before topping.
In the bigger picture, price actions from 1.2329 are treated as consolidation in the down trend from 1.6039 only, with first leg completed at 1.4719, second at 1.2456. Break of mentioned 1.3793 support will argue that the third leg from 1.2456 has completed at 1.4337 too and deeper decline should be seen to 1.2456/2884 support zone. Though, in such case, as we're favoring that it's developing into triangle consolidation, downside should be contained by 1.2456/2884 support zone and bring one more rise to complete the consolidation. On the upside, while another rise cannot be ruled out for the moment, focus will remain on reversal signal as EUR/USD approaches trend line resistance (now at 1.4419).
In the bigger picture, price actions from 1.2329 are treated as consolidation in the down trend from 1.6039 only, with first leg completed at 1.4719, second at 1.2456. Break of mentioned 1.3793 support will argue that the third leg from 1.2456 has completed at 1.4337 too and deeper decline should be seen to 1.2456/2884 support zone. Though, in such case, as we're favoring that it's developing into triangle consolidation, downside should be contained by 1.2456/2884 support zone and bring one more rise to complete the consolidation. On the upside, while another rise cannot be ruled out for the moment, focus will remain on reversal signal as EUR/USD approaches trend line resistance (now at 1.4419).
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even if this puppy could rise i`d be looking for 1.3920 area for high.
