EUR/USD has been trading lower. The price tested the level of 1.1294.
After few days of the upward movement on the EUR/USD pair, buyers became overbought and the sellers started with the distribution process. According to the H4 time – frame, we found a breakout of the 4-day upward channel, which is a sign that there is potential for the downside movement. We also found a failed test of the high at the price of 1.1338, which is a sign of weakness. The Keltner channel turned bearish, which is another indication of the changing in trend behavior from bullish to bearish. Support levels are seen at 1.1277, 1.1248 and at 1.1180.
Trading recommendation: We are bearish on EUR from 1.1300 and with main target at 1.1180. Protective stop is placed at 1.1345.
The material has been provided by InstaForex Company – www.instaforex.com