By: Colin Jessup
The EUR/USD is currently trading right on the weekly pivot point at 1.3330 and has pushed into, but not closed above the daily support/resistance zone of 1.3400. Price on the 4-hour chart is forming a bearish pennant of sorts with a Bearish 4-hour shooting star having pushed its tail up into the 1.3400 zone as well as the daily Moving Average at 1.3420. This is a pretty strong indication that we could see some bearish price action in the next few hours and could possibly test the weekly S/R zone at 1.3173 +/-. The overall trend is indeed bearish but we have a possible double bottom forming and could see prices bounce. If price does indeed turn more bullish, look for resistance at 1.3540 and again at a weekly zone of 1.3650. If prices continue to fall, we will be looking for support at 1.3275 short term and 1.3175 in the bigger picture as this is a weekly support zone. I am cautiously Bearish on this pair for now.
Happy Trading!
