EUR/USD Price Analysis: Bulls are on a collision course towards key resistance

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  • EUR/USD bulls are approaching key resistances.
  • The bears are on the prowl and looking for an extension to the downside.

The EUR/USD is trying to break out of a consolidation phase after falling from around 1.02 the figure early last week. However, the price may find resistance in the coming sessions if the bulls maintain the collision course of a large downtrend line. The following analysis illustrates a bearish bias for the next few days.

EUR/USD H1 chart

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On the hourly chart the price tries to break the horizontal resistance, but if the trend line support is broken then the price is expected to quickly turn down again and return to the side channel.

EUR/USD daily chart

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EUR/USD is correcting in a trailing trend on the daily charts within the bearish cycle and below the trend line resistance. A 50% mean reversal will see price approaching resistance and failures will bring the lows back into the spotlight with the prospect of a broader downtrend extension lower.

Source: Fx Street

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