- The 1.0820 structure of the EUR/USD has been broken.
- Eyes are on a test below 1.0770 to protect the risk of a fall towards 1.0700/20 support.
According to the analysis of the beginning of the week, the bears of the EUR/USD they needed to break the trend line support on the lower time frames, such as the 4-hour chart:
The M formation was compelling in this regard, but the neckline needed to hold for the open to reaffirm a downside bias and trend line breakout prospects and downside potential for the coming week.
Instead, the bulls moved in and removed the neckline as follows:
The move has been significant as it has cleared the horizontal resistance at 1.90775 which could now start to act as support:
That being said, the daily W formation remains compelling as price slows on bid:
The bulls are expected to defend 1.0700 on a retest, which could lead to a bullish continuation as illustrated in the chart above.
EUR/USD H1 chart
Meanwhile, the hourly trend line broke and thus to a micro horizontal structure that makes a bearish outlook for the next few sessions:
The 1.0820 structure has been broken and all eyes are on a test below 1.0770 to protect the risk of a fall towards 1.0700/20 support.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
