- EUR/USD is on the verge of a breakout one way or the other.
- The bulls could be tiring for the meanwhile which leaves scope for a meanwhile correction.
The euro bulls have been in charge at the start of the week but they could be tiring at this juncture. The following illustrates the prospects of a move lower in the meantime prior to the next leg higher for the medium term.
EUR/USD daily chart
The daily chart's W-formation has yet to complete a retest of the neckline which leaves prospects on the table for some meanwhile mitigation of the price imbalance left behind following the bullish impulse. These are drawn as grey areas on the chart above and align with the Fibonaccis, with the 61.8% golden ratio a potential last stop.
EUR/USD H4 chart
If the above were to play out, then the bears will need to commit to a break of the 1.0203 recent lows and 1.01297 below there on the 4-hour chart.
