EUR/USD is under massive selling pressure on the H4 chart after failing to come back towards 1.22. As you can see, the pair is trapped within a down channel pattern. The bias remains bearish as long as the price stays within this formation.
The rate has pressured the channel's upside line, the downtrend line, failing to stabilize above it signaling that the sellers could send the rate towards new lows anytime again. Dropping below 1.2097 former low could bring an aggressive sell-off.
Trading Conclusion!
You could still catch a downside movement, a decline, as long as EUR/USD stays within the down channel's body. The 1.2000 psychological level is seen as the next downside target if the price continues to drop.
If you'll go short, don't forget to place a Stop Loss above the former high, somewhere above 1.2150 level.
The material has been provided by InstaForex Company - www.instaforex.com