FX.co ★ EUR/USD

EURUSD. Good afternoon. The Euro/Dollar moved north yesterday; the bears were unable to seize the initiative. At the same time, the pair reached the resistance zone and started to bounce off it today. So for now I’m looking at a possible continuation of the move south, but only in the short term. Technically, on the hourly chart the indicators are in the process of forming an intraday sell signal, and the pair has climbed into the bearish zone of the Bollinger channel. If it consolidates here, we can continue the decline to around 1.1355-60 in the short term. At the same time, a potential double top is shaping up on the chart with the same target for completion. On the 4-hour chart the indicators are still pointing north, but the buy signal has not been activated here, and the pair is now heading to test the middle Bollinger band from above, where, depending on a breakout or a bounce, it will show its further bias. I’m leaning more toward the breakout and decline scenario, but in any case I’ll wait for the result of the test.