- EUR/USD is moving sideways in a consolidative channel.
- Bulls eye a move to 1.0800 while bears look to the trendline and lower end of the 1.05s.
As per the prior analysis, EUR/USD Price Analysis: Bears are moving in and eye 1.0500 at the extreme, the bears are still lurking at a critical juncture on the charts as the following will illustrate.
EUR/USD prior analysis
It was illustrated that we were 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 was expected to open the risk of a continuation towards the trendline support and a test of 1.0500 at the extreme.
EUR/USD update
We are seeing some sideways action here and this could be setting up for a breakout in the coming days. However, given the bias is to the upside while on the front side of the trend, bears will be cautious in shorting the market but more confidence will be gained if the equal highs are tested with liquidity swept above followed by a break of current support making for a change of character in the market. At least a test of the dominant trendline could be in order under such circumstances.
If the bears commit, then a test of the trendline could be the next objective and a 50% expansion of the recent consolidation range exposes the lower quarter of the 1.05s.
On the other hand, considering the price remains in a bullish trend on the front side of the dominant trend line, then there are prospects for an outright continuation to the upside to target 1.0800:
The price has corrected into a 61.8% ratio and so long as the support quarter of the 1.05s holds, then a bullish impulse into 1.0800 could be on the cards.
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