- EUR / USD are leaving the market with the bull market consolidating.
- Swing traders are looking for signs that the markets are turning and confirming on short time frames.
EUR / USD is falling short in a phase of delivery and the following swing provides a top-down analysis for traders.
Several steps of price action have to be taken to confirm the bias of a new recession within the breakout from the existing structure.
The monthly chart provides a negative target in a correct bullish market.
A trend line has been broken and retired on the daily chart.
Failure to return above the counter trendline opens the risk of a breakout from an uptrending uptrend to a downside.
As can be seen, the four-hour scenario illustrated in the chart above shows the potential for 61.8% retracement of the recent rally following a possible rejection at current resistance.
The flow of price action on the chart is determined by examining support and resistance structures and the expected response from them in a falling market.