EURUSD Bears Challenge Triangle To Get Full Control

Technical analysis of Forex market

EURUSD has been making lower highs and higher lows since the end of March on the four-hour chart, forming a shape of a symmetrical triangle, which looks to be at risk at the moment.

The momentum indicators are currently indicating that bearish pressures exist as the RSI seems to be resuming negative momentum below its 50 neutral mark, while the stochastics have yet to confirm oversold conditions below the 20 level.

Still, a decisive close below the ascending tentative trendline stretched from 1.0635 is probably required to give the lead to the bears. Such as and if the 1.0767 obstacle lets the sell-off to continue, the way would open towards the 1.0717 barrier and then to the 1.0665-1.0635 support region.

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On the other hand, if the price drifts higher, the 1.0878 mark could grab some attention before all eyes turn to the upper descending trendline and the 1.0900 number. Another winning battle at this point, may bring additional buyers into play, with resistance likely running up to 1.0950 where the 200-simple moving average (SMA) is currently positioned.

Summarizing, EURUSD is overall neutral within a symmetrical triangle that looks to be nearing completion as the price is pushing to break the lower part of the formation. Should the market close comfortably below it, the bears may take full control.