Last week I mentioned that the breakdown below the triangle after a false breakout could trigger further bearish pressure testing the major bullish channel as a part of the bearish scenario since the fall from 1.4939. This week, the bearish pressure has gone even further, broke below the bullish channel as you can see on my daily chart below. The way I see it, EUR/USD is in early phase of a major bearish reversal scenario, testing 50% Fibonacci retracement of 1.1875 – 1.4939 around 1.3400 next week. Price also has broken below EMA 200, both on daily and weekly chart, supporting the bearish outlook. Immediate resistance is seen around 1.3770 area (38.2% Fibo) followed by 1.3935 (Friday’s high).
Have a great weekend and see you guys next week.
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