EUR/USD Price Analysis: Bears attacking the bullish H4 trendline support
|- EUR/USD H4 M-formation is compelling for the start of the week.
- Bers eye a downside move below 1.0780.
As per the prior analysis, EUR/USD Price Analysis: Bulls could be running into a trap, it was explained that the breakout traders had been triggered into the market ahead of the Consumer Price Index event. However, the data ignited a rally that took out the 1.0800 and likely hunted down stops in the 1.0850s. This leaves the scope of a reversal on the cards for the days ahead as per the poster CPI technical analysis, EUR/USD prints fresh bull cycle highs, on course for 5-day rally.
EUR/USD prior analysis
This puts the downside thesis into play as follows:
The analysis highlighted the downside risks as illustrated above.
EUR/USD update
The price has since stalled and is on track for a re-test of 1.0780s and lower towards 1.0700. However, the bears need to break trendline support on the lower time frames, such as the 4-hour chart as follows:
The M-formation is compelling in this regard. the neckline needs to hold for the open this week to reaffirm the bearish bias and prospects of a break of the trendline and downside potential for the week ahead.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.