The EUR/USD currency pair showed a sideways trend on the hourly chart in the afternoon yesterday. After the market closed, an ascending triangle pattern formed. The price has been within the bearish zone of the Bollinger Bands. Currently, the pair is priced at 1.0417. The RSI and MACD indicators are both below the zero level, indicating bearish momentum. If the price breaks above and consolidates within the triangle, the analyst will look to buy. If the price closes below the triangle, the analyst will consider a sell.The support level for potential purchases is at 1.0530. The downward trend continues, with the price not even approaching the higher 200-day moving average, let alone showing signs of a reversal. Each subsequent decline is happening with increasing speed, while corrective movements are confined within a narrow range, not exceeding forty points.
The recent drop in the Euro broke through the expected channel boundary and consolidated below it. Given the strength of this decline, further downward movement is likely. Oscillators are not signaling a reversal or an upward move anytime soon. The stochastic histogram can remain in this position for a while, and the channel oscillator isn't indicating any growth either. Therefore, further declines, potentially towards the 1.0270 level, which also coincides with the 200% Fibonacci retracement from the first wave, are anticipated. The past trading week was quite unexpected, catching many traders off guard, including the author. While a decline was anticipated, the outcome was surprising. The author was expecting a deeper upward correction from the 1.0500 level and managed to close a couple of buy trades. However, once the price broke the 1.0500 level, the author decided to buy again.Based on the current financial data, it appears the downward movement in the market is expected to persist beginning next week.
