Market Research

EURUSD Forming Bearish Momentum

22-May-2017 @ 03:11 PM

EURUSD has formed some bearish engulfing pattern at the top of the bullish rally. On h4 time frame, inverted hammer pattern has been formed which is indicating some bearish momentum. It seems that sellers are active at this moment and traders can go for sell for short time. Near-term support zone lies on 1.1075. 

Earlier EURUSD has had three significant and rising lows in 2017: 1.0340 in the wake of the year, 1.0490 in March and 1.0565 in April. Also on the topside, we can see higher highs. In the past week, the pair made a move above the channel limits, as seen on the charts. 

Technical lines from top to bottom:

1.1420 was a high back in the summer of 2016. 1.1360 capped the pair in September.

1.13 is the top line seen in November before the collapse. 1.1170 was the high line in May 2017, after the Comey memo.

1.1120 was a support line beforehand. The round number of 1.10 is a key psychological level.

1.0950 is close by, and the most recent 2017 high. The swing high of 1.0870 is the swing high in December and remains fierce resistance.

1.0820 was the post-French elections low. 1.0775 capped the pair in January and remains of importance.

1.0720 was also high in January. The pair was unable to crack 1.0660 in February and it remains the high end of the range.

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