I wanted to give you my outlook of EUR/USD as price is now back at the key descending trendline, which we have seen 3 rejections from in the past.
The below chart which is the 4 Hour timeframe is zoomed in so you can not see the previous trendline rejections however if you zoom out you will see this trendline has held since early 2019.
Price is now back at the trendline where of course we will be looking to see how price reacts. Price rejected off the 4 Hour timeframe yesterday however price was then pushed back which could be for a second rejection.
The rejection off the trendline is also a perfect rejection off the bearish fibonacci 78.6% area.
Confirmation of further downside movement would be to see price below the area of 1.13000. A break of this area and we would look to see price back to 1.12400 and then 1.11850.
Taking into consideration if price was to show a breakout to the upside, we would look to see the trendline area retested before seeing price continue to 1.13950.
James at Technical FX109