Last week, EURUSD pair found support at 1.214. Today, the price is still in the upward trend, however, as can be seen, it does not look very strong. The price is just above the EM25, which means the upward trend still exists, but is far from convincing.
The rising candles are short which helps confirm the fact of losing bullish power. While the Bollinger Bands go down a little bit, price is about to touch the upper bands. As we know, the Bollinger Bands would push the price back to the middle line, so, will the price bounce back? And if it does, how far?
The Stochastic & RSI are already oversold, meaning the price could go down anytime. However, this downward wave does not mean it is the end of the general upward trend. Let’s take a look at the rising triangle I marked on the 4 hours chart. The rising triangle is always considered a bullish signal. At this moment it is halfway complete. So, the downward signals mentioned earlier could be the downward wave of the triangle. Since the triangle is coming to an end, the range of waves is becoming shorter as expected. Generally speaking, it looks like the price is losing bullish power and we could see price consolidate over the next few days.
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