Situation on the EURUSD looks rather bearish. From the bright side, we still do have recent uptrend started in December and recently price broke an important resistance (blue) but currently buyers struggle to hold EUR on the high levels. As we can see on the H4 chart, at the end of March, buyer’s managed to break the resistance created by two recent crucial tops (1.1340). Unfortunately for them, price action suggest that this is it and they simply do not have enough determination and power to carry on with the climb. Those three long upper wicks created a perfect triple top formation supported with the divergence on the MACD histogram. Usually it is a very bad sign for buyers.
Current price action also suggest that there is no longer any willingness to defend the 1.1340 support. Price is now aiming the green square which seems to be an important place to create a bounce. For two reasons. First is a mix of two mid-term trendlines (red) and the second one is 23.6% Fibonacci retracement (yellow). Breaking this level will be a definite sign to sell and should end the bullish dream for a while. In this scenario, price should not be disturbed with the slide to the last important trendline in the midterm, which is around 1.1010.
As always, technicals can be changed by the macro data. Calendar is pretty rich till the end of the week with the US retail sales and CPI as the main events. Worse than expected data is the buyers only hope as the price sinks deeper with every single second of todays trading.
This content is supplied by top analysts from Admiral Markets Technical analysis team.