EUR/USD Price Analysis: Bulls are up against pressures in a key support zone
|- EUR/USD bulls need to commit at a key juncture on the lower time frame charts.
- Bears are focussed on a break of critical support.
EUR/USD is testing a key support area on the four-hour charts within what could be the makings of a fresh daily bullish impulse. The following analysis identifies the key market structures on a multi time frame basis.
EUR/USD prior analysis daily chart
It was stated that ''the price broke the horizontal resistance that is now responding as a support zone on the retest. The bulls have committed to the course and a run into prior support and resistance between 1.0761 and 1.0936 could be in order with the 1.08 figure a key target.''
EUR/USD, prior analysis H4 chart
The W-formation's neckline near 1.0705 was eyed as a potential base from which bulls could engage in order to target the 1.08 areas.
EUR/USD live charts
The price has moved in a W-formation and retested the pattern's neckline and has treated it as support. The bulls need to commit at this juncture if the daily extension is going to take place.
EUR/USD H1 charts
If the price is going to respect support and continue higher, the outcome could look something like the above on the hourly chart. However, there is the possibility that the bears will take control and send the price lower to restest 1.07 the figure as follows:
As illustrated, the price is being resisted at a 61.8% golden ratio and should the bears commit and break support, then a downside continuation will be on the cards. This will leave the pair in no man's land and trapped between longer-term support and resistance on the daily chart:
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