Forex News

Snaps three-day losing streak, but bulls are not out of the woods yet

  • EUR/USD’s hourly chart shows momentum remains bearish. 
  • A break above 1.0887 is needed to abort immediate bearish setup. 

While EUR/USD ended its three-day losing run with a 0.36% rise on Thursday, the path of least resistance for the single currency remains to the downside. 

Indeed, the hourly chart descending trendline has been convincingly breached, however, the lower highs setup is still intact. The spot needs to rise above 1.0887 to invalidate that pattern. 

Moreover, the bounce from Thursday’s low of 1.0766 looks to have run out of steam near 1.0840 amid the bearish crossover of the 100- and 200-hour averages. Further, the indicators on the 15-minute chart have rolled over in favor of the bears. 

As a result, a re-test of 1.08 looks likely. A violation there would expose Thursday’s low of 1.0766. On the higher side, 1.0887 is the level to beat for the bulls followed by another hourly chart resistance at 1.0926. 

Hourly chart

Trend: Bearish

Technical levels

 

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