EUR/USD Labyrinth, Act 2

EUR/USD: A new uptrend channel developed on the 4h chart. But the 3-TOP pattern on the 1h/4h chart could push the price down. It is a matter of hours until it falls onto the lower limit of the channel again. The dark red dashed trendline repeatedly provided strong support and pushed the price upwards on several occasions.

The bears will, however, outnumber the bulls under the orange horizontal line (1.1642) which is a key S/R area. If the price moves under it, a sell signal should kick in with TP1 onto the navy blue line (1.1531). The price could also make various moves between the teal lines and so consolidate in the area again.

If the price does not break the lower limit of the channel, it will race towards the magenta trendline. The move in itself may not be supported by other technical indicators but a lot of bearish activity has been happening since 1.2400. As of that, the next values insight are 1.1750 and 1.1820 (a historical S/R area).

Finally, one might be interested in the bearish harmonic ABCD (A: 1.1618, B: 1.1724, C: 1.1653, D: ~1.1715) on the 1h chart. It is not a completed pattern, but it is a wall to any bull rally.

EURUSD Labyrinth, Act 2. September 19, 2018

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