The pair led two attempts at breaching the critical resistance that descended currently towards 113.35 which is the key area for returning to the ascending channel previously breached.

Those attempts reflected the strength of the previously breached support that suppresses the euro’s upside attempts. Looking at the secondary image, we can see the bearish harmonic pattern was activated with the breach of its support, signaling that the pair will continue the main downside wave.
Stochastic provided overbought signals and a negative crossover supporting our bearish anticipations over short term basis targeting the recorded trough at 108.06.
In general, the pair is to continue the downside wave, though breaching and stabilizing above 113.35 will take the pair back into the breached ascending channel rising initially towards 118.00.

By: Yasir Mubarak
Senior Technical Analyst