EUR/USD: detailed chart mark-up. What is the next move?

4 thg 1, 2023

Looking at higher-timeframe charts of EUR/USD , we may notice that initially, the price has been trading within the borders of the ascending channel plotted on the graph. Afterwards, the price started consolidating in a sideways-moving rectangular box and it was unable to break above or below due to the lack of liquidity during the holiday season. This week, as soon as momentum kicked in, a massive bearish candle was printed and the lower barrier of the rectangular box was successfully penetrated. At the moment, we may observe that the price is pulling back and correcting the recent impulsive leg before potentially continuing its bearish moves. Thus, we are eyeing the zone plotted on the chart (important resistance that lines up with the 61.8% Fibonacci level) and awaiting some development around that area before executing short positions and aiming for the South.