Technical analysis for EUR/USD for February 8, 2019

Technical analysis for EUR/USD for February 8, 2019

EUR/USD has reached our downside targets and is challenging the 78.6% Fibonacci retracement support. I continue to expect a bounce towards 1.1380-1.14 where we will see the strength of the bulls if it is enough to overcome bears. 

Red line – major resistance trend line

Green rectangles – topping pattern repeating

Black line – bounce target and resistance

Purple line – expected path

EUR/USD is challenging Fibonacci support. The 4 hour RSI is oversold and I expect at least a short-term bounce towards 1.1380-1.14 where we find the 38% Fibonacci retracement resistance of the last leg down. Breaking above 1.14 would be a bullish sign at least for the short-term. Such a break out could push price back towards the red downward sloping resistance trend line. Only a break above 1.15 would put bulls back in control of the trend.

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