EURUSD Continues To Look Bearish
Recovering from yesterday’s decline, the EURUSD exchange rate has positively corrected by about 1.5% in a matter of 36 hours. But, this isn’t going to last.
The current momentum looks to be failing just ahead of the 1.4100 big figure barrier. The round figure resistance coincides with further resistance at 1.4110 (38.2% fib from 1.4551-1.3837 bear wave decline) and 1.4150 (descending trendline resistance).
Major oscillators are additionally supportive of the move as a textbook pennant formation is nearing its completion in the 15-minute time frame. As a result, we anticipate further selloffs in the EURUSD spot rate on a break of current support at 1.4050 (confluence of 50 SMA and rising trendine support).
But, as always, a strong break above the aforementioned 1.4110 and 1.4150 barriers would negate the downside bias – setting targets higher at 1.4250.