As we have seen a great loss of support level 1.078$ and 1.06$ on EURUSD, now we have the support level 1.05$ which leave us with possible outcomes of:
- Continuation of the wedge that can be seen in 4 hours chart as bear flag which is more likely because of the last daily bar with the shadow almost as long as the body and the context of bear market on daily chart. This will lead to fall of the EURUSD to lower channel with the support level of 1.035$ which the price last seen on Dec 2016 & Jan 2017.
- Or we can have the price continues in the channel between 1.06$ and 1.05$ for the whole week and wait for a reversal pattern.
The war in Europe also can be a factor in our bear trend.
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so far so good.
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As you can see,we have a good amount of shadows on top of the last 3 bars on daily chart,which indicates that the selling pressure still exist and we may have some red bars for the next couple of days.