EurUsd- Bears should start being careful

26 Eyl 2023

EurUsd has been dropping pretty much contained in a channel for more than two months now and, as expected and stated in a few past posts, is approaching the 1.05 crucial zone.
Although, in the long term, my bias remains bearish for the pair, at this moment, in my opinion, bears should start being careful and a reversal is looming.
Looking at the posted chart we can see that 1.05-1.0550 acted as support at the beginning of the year and again in March, and for a break under a strong catalyst is needed.
With all fundamentals already priced in, I don't see a drop under this zone, and the pair could start trading in a range.
That being said, in my opinion, short trades from this level are not worth the risk, and is better for traders to wait for reversal signs and trade an up correction towards 1.08.

Best of luck and happy trading!
Mihai Iacob