With an activated Head and Shoulders pattern, a bearish flag being broken, price below the neckline, it is looking good if you are short. EUR/USD is expected to move lower towards 1.15. Above 1.1680 we start considering the false breakdown scenario and a full scale upward reversal for new highs.
Trading just above the long-term red trend line support after being rejected by the black downward sloping trend line resistance. A bounce off this red trend line could bring price back towards 1.34. A break above the black downward sloping trend line could push price towards 1.40.
Short-term support is just above 1.30 where we also find the 61.8% Fibonacci retracement of the latest rise.
Bearish divergence in the 4-hour chart. Price still in bullish trend but with weak momentum.
Rejection at the 50-61.8% Fibonacci retracement area and cloud resistance. I remain bearish here looking at least a move towards 131.60.
The corrective bounce in USD/CAD since 1.2060 is near completion if not already completed. I believe one more final higher high could come in USD/CAD near 1.31 where the 61.8% Fibonacci retracement resistance is found. Short-term support is at 1.2680-1.2660.
Price remains inside the bullish channel and inside the Kumo (cloud) support. Despite the rally in oil prices the USD/CAD has only turned lower recently….I believe the final thrust towards 1.31 will be given the same time with a pull back in oil prices towards $52.
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