Once in a while, it is important to analyze bigger TF(timeframe) charts to understand the big picture. It's the last day of the trading week and after a series of successful sell trades in EUR/USD( 170 PIPS gain combined), I am analyzing the Weekly chart. So, what do we see here?
First, take a look the small rectangular box that I have highlighted. You can see weekly candles with long wicks at the top. This shows that Sellers are stepping in and preventing the buyers from gaining an upper hand.
Secondly, this weekly rejection candles are being formed at a Resistance Level. This resistance level has stopped the Bulls many times in the past. (Look at the hammers).
These factors coupled with the fact that EUR/USD has been unable to break the key 1.1480 level gives us a strong Bearish Bias. I am expecting a significant drop in EUR/USD over the next few weeks. I expect a drop to 1.08 and even 1.05 if US Dollar demand surges.