After breaking to the downside from a daily ascending trend channel in Mid-September, EUR/USD price has been on it's first bearish move since April. Zooming in to the 4H time frame, price has recently created a lower high, which is situated at the key level of resistance between 1.1744 and 1.1715. We believe this could signify we are now setting up for the next downwards impulse, which could take price back down to the lows of 1.1616 and onwards to the support situated at 1.1500.
If price breaks above the sloping 4H descending trend line we have on the image above, this analysis will become invalid and we will exit the trade.
If price breaks above the sloping 4H descending trend line we have on the image above, this analysis will become invalid and we will exit the trade.