Today we are going over some of the notes on this EUR/USD chart and the potential for a bearish continuation
The bigger green zone along the bottom of the price action created from the end of October last year to Mid-Novemeber was where most of the aggressive buyers came in to drive price higher @1.156 to 1.17
The sell zone above in yellow ranged between 1.25 and 1.235. The size of each area is similar because it spans between 250 and 300 points
I have on here the 50 period simple moving average to indicate trend, and on the chart the first few times price broke above the 50 SMA confirmed and then retested support. Price flew higher for several weeks until crashing into 1.25
At 1.0 - Price retested the moving average which acted supportive
At 2.0 - Price consolidated above and below with several closes in both directions, before ultimate break out above which fizzled quickly @ 1.2450
At 3.0 the series of lower highs is beginning to set in where the market is trying to create newer lows, price also is starting to flirt with the 50 SMA and possibly close below to confirm bearish sentiment
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