Market Analysis

Technical Analysis: EURUSD has changed the overall trend to bearish

EUR/USD fell to a fresh 2021 low at 1.1900 this week, ending with a handful of pips above this level as the pair has bounced just modestly from 1.1885. A crucial breaking point that was the first sign of changing the direction was a break below 1.2061 level. On the other hand, it was very important to see clear confirmation of the changing trend. Even though 1.2061 is now resistance level supported by FIB retracement of 50% 4h TF and both Moving Averages lines 89 and 55. This level looks good from a bearish perspective as resistance level having in mind all technical tools that support it.

On the other hand, such an oversold stochastic makes bearish traders sitting away from the trades waiting for a price correction to uplift their technical tools and give enough information for action. The current price position according to this scenario should be another time target point for a position taken below 1.2061.

From this position, it is time valued point to have all settled up for the action, but assuming the number of points in that scenario, it is worthy to be patient.