EURUSD inability to break above 1.1760 puts bulls in trouble

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July 12, 2018
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EURUSD is trading below 1.1650 after getting rejected at 1.1750. This rejection has bearish implications for the medium-term as I now can see EURUSD move towards 1.12-1.10. As long as  price is below 1.1750-1.1760 I remain bearish. A break below 1.15 will confirm this bearish view. In the short-term price has broken down below the 4 hour Ichimoku cloud (Kumo).

EURUSD got also rejected at the Daily Kumo. This is another bearish sign.

The recent two month consolidation could very well break to the downside as it did back in the start of the year. EURUSD is bearish as long as price is below 1.1760. Break 1.15 and we are off to 1.12-1.13.

The price action could develop into a triangle pattern. Triangle patterns are found in the final stages of trends. And in this case I believe we could see a break down of the triangle pattern towards 1.12-1.13 before the longer-term trend reverses to the upside.

 

Concluding, we are bearish EURUSD as long as price is below 1.1760 looking for a break of 1.15 and then 1.12-1.13. Break 1.1760 and we will see 1.19-1.20. However this scenario is the least probable. The most probable scenario is for EURUSD to move lower.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.