EUR/USD Downtrend Continues at the Upper MAs

EUR/USD Technical Analysis

• EUR/USD Rejection at the upper zone
• The move below MA is bearish
• Trend is still strong
• Consolidation at the bottom
• 0.9922 is the confluence

MEGATREND MAs: Bearish

D1 Chart EUR/USD

1. Higher high – double top
2. Lower low – important support
3. Deeper retracement
4. Trap trade
5. Swing target

The EUR/USD is bearish with the whipsaw market action seen on Friday. The reason is the profit taking coupled with the ECB rate hike of 75 basis points. There are 2 ways how EUR/USD is moving. The pair rallies after the ECB hikes rates or the news of possible rate hikes. It goes down after the news of higher than expected US inflation. So there is a bit of headline risk in the pair.

Technically it is still bearish. The MEGATREND MAs crossed lower but we can see a possible inverted bullish SHS formation if the pair hits the confluence zone 0.9922. We can expect some major range until the market decides where the next move is going to be. 0.9922 is the intraweek target. If it breaks then we should see 0.9793 as the swing target. The trap trade is in progress and the original entry happened at the confirmation of the Trap trade in the 4h timeframe.

This analysis, the Trap trade and all entry signals and targets are a part of the Megatrend system and a trading course. I am maintaining 1 short trade on the EUR/USD.

Cheers and safe trading,

Nenad