29.03.2023 05:52 PM
EUR/USD: bearish pattern in play

The EUR/USD pair registered a strong growth in the short term and now is trading at 1.0838 at the time of writing. It has climbed as much as 1.0871 today where it has found resistance. Technically, the price action developed a potential bearish formation.

Fundamentally, the USD received support from the US Pending Home Sales data. The economic indicator reported a 0.8% growth versus the 2.9% drop estimated. Tomorrow, the US Final GDP, Unemployment Claims, and the German Prelim CPI are seen as high impact events and should bring more action.

EUR/USD Sellers Could Take The Lead!

This image is no longer relevant

From the technical point of view, the EUR/USD pair tested and retested the ascending pitchfork's median line (ml), registering only false breakouts. A valid breakout through this dynamic resistance would have signaled a larger upwards movement.

The price action developed a flag pattern (up channel). This could represent a downside formation.

EUR/USD Outlook!

A new lower low, a bearish closure below 1.0816 activates more declines. This is seen as a bearish signal.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2023
  • Grand Choice
    Contest by
    InstaForex always strives to help you
    fulfill your biggest dreams.
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In June we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
  • 30% Bonus
    Receive a 30% bonus every time you top up your account

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback