EUR/USD has made some progress to the downside as expected after breaking below 1.1430. EUR/USD remains in a short-term bearish trend as long as price is below 1.1450. EUR/USD is targeting the 1.1355-1.1375 area where we find Fibonacci retracement support.
Green rectangles - topping pattern
Blue rectangles - short-term support levels
Black lines - break down target equal to first leg down
Red line - resistance trend line
EUR/USD is challenging short-term Fibonacci 50% retracement support level at 1.14. Breaking below it will push prices towards 1.1375 and 1.1350. If these two levels are broken as well, then the chances of moving towards 1.13 and lower will increase dramatically. Resistance is found at 1.1435 and at 1.1450. Bulls will need to at least break above these two levels in order to hope for a bigger bounce above 1.15. A break above the red resistance trend line will be an important win for bulls. But until then we remain bearish.
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