EURUSD Daily Analysis – May 7, 2018

EURUSD stays below a falling trend line on its 4-hour chart and remains in the downtrend from 1.2413. As long as the price is below the trend line, the bounce from 1.1911 could be treated as consolidation for the downtrend, and further decline to 1.1800 area is still possible after the consolidation. On the upside, a breakout of the trend line could bring the price back towards 1.2031 resistance. Above this level would indicate that the downside movement had completed at 1.1911 already, then the following rally could take price to 1.2200 zone.

EURUSD 4-hour chart