EURUSD is still in a bearish structure/sentiment. Until it breaks the resistance, and the retracement above it, we will continue to see the bearish side of the pair.

Descending trendline has been broken out for buys. Market has validated the buys by opening and closing above the trendline. Now, we will look for a breakout buy on a lower time frame to confirm the buys. Until the resistance is breached, we cannot ascertain the bullish pressure being formed.

The 75-78.6% retracement level is in confluence with the resistance, slightly above it. The price of the retracement level is 1.1400. Market has yet to test this retracement level. Once it does, we might see a downward impulse.

EMA 50 is in a range bound where as, EMA 200, is still above the market, indicating a bearish sentiment. We cannot ascertain anything properly on EMA 50 as it is ranging. Therefore, EMA 200 will be considered the true picture for this. At the resistance, we may witness the retest of EMA 200.

Currently, RSI and CCI, both are in a bullish range, returning back from over extended buy region. We may see a divergence sell being formed at the resistance level. Once it is formed, we will have several technical factors for the bearish push.

EURUSD shorts from 1.1370

Dec 08 2021