EUR/USD Price Analysis: Holds above 1.09, charts show failed breakout
- 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
Reprinted from FXStreet，the copyright all reserved by the original author.
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