EUR/USD Technical Analysis: Euro Drops Trending – EUR/USD TECHNICAL STRATEGY: BEARISH
- Tepid Euro rebound stails at resistance from Jan 2018
- Near-term positioning hints bearish reversal may be brewing ahead
- Sellers may seek breakout confirmation
The Euro is retesting resistance defining the downtrend vs the US Dollar since Jan 2018 once again.
The appearance of a Shooting Star candlestick at this barrier speaks to indecision and may precede a reversal downward.
Zooming in to the timelier 4-hour chart seems to reinforce the sense that a sell-off is on the horizon. FX Prices have produced a Bearish Engulfing candlestick pattern coupled with negative RSI divergence, hinting the week-long EUR/USD recovery may now run its course.
Importantly, the series of higher lows establishing immediate support remains unbroken. Traders looking to take up the short side might wait for confirmation on a breach below this threshold to commit in earnest, especially since selling directly into support might be judged as unattractive on risk/reward grounds.