From TradingView · · 1m
EUR/USD bearish trend continues despite correction pause
Technical analysis suggests the euro remains in a downtrend against the dollar, with a potential bounce before further decline.
In brief
Technical analysis suggests the euro remains in a downtrend against the dollar, with a potential bounce before further decline. EUR/USD is bearish on the daily timeframe, but price is still above a key trendline that could trigger a bounce before the downtrend resumes. Originally reported by TradingView.
Overall bearish trend intact
EUR/USD shows a bearish trend on the daily timeframe. Price recently exited a correction phase and is starting to move impulsively downward.
“The overall trend is Bearish on the Daily Timeframe.”
Price above key trendline
The pair is still trading above a diagonal bullish trendline. This means the 90% rule pattern hasn't been triggered yet.
“EU price is still trading above the diagonal bullish trend thus the 90%rule Pattern hasn't been activated.”
Bounce likely before drop
There's a strong chance the price will bounce off the trendline before continuing lower. The original bearish trend remains the dominant force.
“Chances of it bouncing on the trend line are likely.”
Market flip confirms bearish bias
Based on the market flip pattern, EUR/USD direction is clearly bearish. This is the primary trend to follow.
“But based of the original trend, market flip, EU is Bearish.”
Economic events won't change trend
Key economic releases might cause temporary price shifts. However, they won't alter the underlying bearish direction.
“Key economic events might shift direction momentarily but not change.”
The essence
EUR/USD is bearish on the daily timeframe, but price is still above a key trendline that could trigger a bounce before the downtrend resumes.
