EUR/USD Daily outlook – 30th November
Fiber closed yesterday producing a bearish pin bar suggesting the market may be in for further losses in the coming days. The bearish pin bar was strengthened as it was showing a clear and solid rejection of upper resistance sitting at the 1.3420 area. A clear trend line can be seen on the daily timeframe which the market has so far been respecting. Yesterday’s bearish pin also showed a clear and solid rejection of the trend line with almost a perfect bounce of it.
Our bearish bias and outlook is supported by a 50 – 61.8% Fib retracement & rejection from the pair’s most recent swing. A look at the chart below shows yesterday’s bearish pin bar rejecting both the 50% and 61.8% Fibonacci retracement levels suggesting further bearish momentum could be on the cards.
A downwards stepping formation can also be seen on the daily TF which again supports the bearish outlook on the euro at this time. The chart below shows the series of H, L, LH, LL, LH, LL, LH, LL, LH, LL. We would need to see the most recent LL broken for this pattern to continue; however the pattern looks strong at this time with the sheer number of highs and lows.
With the Price action & resistance rejections the market is showing we would expect the bearish momentum to continue with the most recent lows (October) at 1.3150 being the next area of support we may see the pair struggle at. However should we see a push through this area we could see further losses with 1.30 in sight.
