- EUR/USD bears are a test of 1.0580which opens the risk of a continuation towards 1.0500 at the extreme.
- Bulls need to get above 1.0650 for a run into the 1.07s.
As per the prior analysis, EUR/USD Price Analysis: Bulls under pressure as bears test commitments at 1.0600, and, EUR/USD Price Analysis: Bulls move and seek a test of key H4 resistance structure, the bulls have been testing the M-formation’s resistance area and struggle to get past, meeting a counter trendline. Failures to break higher at this juncture expose the broader bullish trendline and various horizontal support structures along the way as the following will illustrate.
EUR/USD prior analysis
It was stated that the bulls will need to show up on the front side of the more dominant trendline support or face a downside continuation. On the upside, we have 1.0700 as a key level. We have 1.0790 thereafter as the next level.
On the 4-hour chart, the M-formation is explained to be a reversion pattern and while the price remained in a bullish trend on the front side of the bullish trendline, should the neckline resistance give, then there would be prospects of a fresh cycle high for the week ahead.
However, we are seeing the bears try to commit below the counter-trendline resistance and around the neckline of the formation as follows
A move into the price imbalance below 1.0580 opens the risk of a continuation towards the trendline support and a test of 1.0500 at the extreme.