EURUSD (4H) - medium term bearish bias
The October rally is completing its fifth impulse wave as the euro approaches the major resistance of 1.1160. The first and third waves found support at the 50% (1.0940) and 38.2% (1.0990) Fibonacci retracement levels respectively. The price is showing signs of over-extension: RSI in the over-bought area; horizontal consolidation on the hourly chart. While there are still a few pips to grab for now, we expect buyers to start to take profit as the rally runs out of steam. The moving averages and the trend line are important support areas for a rebound.
Key support: 1.1060
Key resistance: 1.1160
The October rally is completing its fifth impulse wave as the euro approaches the major resistance of 1.1160. The first and third waves found support at the 50% (1.0940) and 38.2% (1.0990) Fibonacci retracement levels respectively. The price is showing signs of over-extension: RSI in the over-bought area; horizontal consolidation on the hourly chart. While there are still a few pips to grab for now, we expect buyers to start to take profit as the rally runs out of steam. The moving averages and the trend line are important support areas for a rebound.
Key support: 1.1060
Key resistance: 1.1160