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  • EUR/USD’s 4-hour chart shows risks are skewed to the downside. 
  • A move above 1.10 is needed to turn the tide in favor of the bulls. 

EUR/USD is trading in the green near 1.0918 at press time, having found bids near 1.0890 on Monday. 

The path of least resistance is to the downside, as the 4-hour chart is reporting a failed breakout – the spot breached the descending trendline connecting March 8 and March 29 highs last week with a move above 1.0940. So far, however, that has failed to entice buyers, as evidenced by the pullback from 1.0968 to 1.0918.

Further, the 4-hour chart shows a rising wedge breakdown, a bearish reversal pattern, which indicates the corrective bounce from 1.0768 has ended and sellers have regained control. 

All in all, risks appear skewed in favor of a drop to 1.0768. A convincing move above 1.10 (4-hour chart 200-candle average) is needed to put the bulls back into the driver’s seat. 

4-hour chart

Trend: Bearish

Technical levels