EUR/USD: multiple confluences are lining up for a "SELL"
Let's take a look at the 3H timeframe graph of EUR/USD and examine it closely.
As it can be inferred from higher-timeframe charts, the price is trading within borders of a massive descending channel. Looking at this specific graph, we can see how the upper barrier of the channel has been rejected and an impulsive move to the downside has happened. Having already completed the correctional movement of this impulse by rejecting the 0.618 Fibonacci retracement level drawn on higher timeframes, the price has tended to consolidate for a while before launching bearish moves.
At the moment, we can clearly observe how the price is leaving candle wicks to the upside and charging up for bearish moves.
We are expecting for the price to continue to decline and reach the zone of support portrayed on the chart that acts as the current Lower Low.
As it can be inferred from higher-timeframe charts, the price is trading within borders of a massive descending channel. Looking at this specific graph, we can see how the upper barrier of the channel has been rejected and an impulsive move to the downside has happened. Having already completed the correctional movement of this impulse by rejecting the 0.618 Fibonacci retracement level drawn on higher timeframes, the price has tended to consolidate for a while before launching bearish moves.
At the moment, we can clearly observe how the price is leaving candle wicks to the upside and charging up for bearish moves.
We are expecting for the price to continue to decline and reach the zone of support portrayed on the chart that acts as the current Lower Low.
