Hello traders, In this analytical post, I would like to focus on higher timeframes for the EUR/USD pair, as on lower timeframes, there is a lot of noise and it's hard to make sense of anything here. Let's start our trading forecast with the weekly timeframe.
As we can see, a broad ascending price channel has been formed earlier, within which the EUR/USD pair has been trading since 2022 up to the current moment. On the chart, we can observe the formation of similar structures in the form of three consecutive bounces off the resistance line. The latest bounce was a false breakout, with a reversal pin bar candlestick formed, indicating a selling opportunity from the current level of 1.1797. I would recommend selling the EUR/USD pair towards the support line, drawn through two previous local lows. The intersection with the support line is projected around the level of 1.1600. Therefore, if selling now, it is possible to take around 200 points of profit in the end. Moving on to the daily chart:
Previously, an ascending price channel was formed on this chart, within which the EUR/USD pair has been trading since July up to February. After the latest bounce off the upper boundary of the sideways channel at the level of 1.2080, which became a local maximum, the EUR/USD pair started a quite aggressive decline and is currently trading at the level of 1.1797. Bears are trying to establish themselves below the round price mark of 1.1800. After this, the EUR/USD pair is likely to continue its decline, with the target for sellers being a drop to the support line, which is expected to intersect around the level of 1.1600 or slightly lower at around 1.1580. I expect this aggressive decline to occur today during the American trading session.
