EUR/USD Price Analysis: Bears look into the abyss, 1.1600 eyed
- EUR/USD intraday targets are being met as price melts to critical monthly support.
- EUR/USD bears taking the price to the edge of the abyss.
- bearish engulfing, bearish RSI and a break of the monthly 38.2% Fibo ar in bearish confluence.
As per the prior Asian session analysis, EUR/USD Price Analysis: Bears waiting to pounce to test daily support, whereby both scalping and intrasession targets were illustrated, the price action has indeed moved according to the forecasts to reach the levels anticipated.
EUR/USD hourly chart, prior analysis
EUR/USD prior set-ups
EUR/USD targets achieved
- EUR/USD Price Analysis: Scalping target achieved
EUR/USD Intrasession, the hourly chart
At the time of writing, the price is consolidating after almost hitting the 1.664 level. The overnight low was 1.1668 with the majority of profit-taking accumulating between 1.1670 and 1.1680.
EUR/USD technical outlook
For the day ahead, the risk sentiment could see the US dollar underpinned and leave pressures on the pair into the European session. However, consolidation is the most likely prospect ahead of key European Central Bank speakers during London and New York.
On the upside, 1.1730 is key resistance on the monthly chart, but daily and monthly RSIs continue to indicate downside momentum, as does the current monthly engulfing candle. The 38.2% Fib of 1.0636-1.2349 has been pierced again and EUR/USD holds below the 10-DMA.
Should August's monthly low break November's 1.1608 monthly low would be targeted and fail to hold, the bears will be in the running for a significant continuation to the downside for the weeks ahead.