In yesterday's analysis, I expected EU to have some rollover towards the downside as price was showing multiple rejections at 1.2176 resistance level, which was exactly what the market performed. Recently EU has a downwards violation of the ascending channel which indicates potential short-term bearish sentiment. As EU is currently having some corrective behaviour (exhaustion pattern/ flag), I will be looking for short-term selling opportunities, there are two scenarios that I am looking at
1. A breach of the flag pattern, with 1.2060 support zone as the initial target. Be aware that we could see price re-visit the 1.2176 resistance level before further bearish continuation (Bearish)
2. If we see some bullish momentum pushing price above the 1.2176 resistance level, that could expose 1.2215 as the next resistance zone (Bullish)
However, do not forget the overall trend on the higher timeframe remains bullish.
Trade safe.
Do follow my profile for daily fx forecast & educational content.
1. A breach of the flag pattern, with 1.2060 support zone as the initial target. Be aware that we could see price re-visit the 1.2176 resistance level before further bearish continuation (Bearish)
2. If we see some bullish momentum pushing price above the 1.2176 resistance level, that could expose 1.2215 as the next resistance zone (Bullish)
However, do not forget the overall trend on the higher timeframe remains bullish.
Trade safe.
Do follow my profile for daily fx forecast & educational content.
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