Technical analysis of EUR/USD for August 21, 2018
As expected EUR/USD has bounced back for a back test at the previous support zone around 1.15. Price is again above 1.15 and challenging the resistance at 1.1520-1.1530. If we are going to see new lows we should expect EUR/USD to get rejected around these levels.
Red line – triangle pattern (broken)
EUR/USD is back testing the lower boundary of the broken triangle pattern. Price is also at the 50% Fibonacci retracement resistance. This is important resistance area. Next resistance is at the 61.8% Fibonacci level at 1.1580. As long as price is below this level and below the upper triangle boundary, we remain bearish expecting new lows for the pair. This bounce could be a nice opportunity to sell EUR/USD with a tight stop as we were doing when price was challenging 1.1730.