- EUR/USD has closed above a key daily level but bears seeking a fuller correction.
- The pair is on track for a restest of the 1.20 level if bulls hold in the current support zone.
EUR/USD is in a weekly consolidation of the monthly bullish trend and remains so while above key daily support.
The following is a top-down analysis that shows how the price has been distributed within a weekly consolidation of the monthly bullish impulse.
The daily chart shows that the price remains in the hands of the bulls above a critical support structure that would first need to give and prove robust on a restest.
Monthly chart
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A bearish correction has yet to complete a 38.2% Fibonacci retracement and confluence of the monthly prior resistance.
Weekly chart
-637420153196352614.png)
This weekly consolidation zone is where the bulls have taken profits from the monthly rally.
Daily chart 1
-637420154571155024.png)
Bullish above, bearish below 1.1880.
Daily chart 2
-637420156949595159.png)
The projected flight path of the bears has been illustrated above, targeting the monthly resistance.
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