On the EUR/USD pair, the downtrend is still in place. However, both buy and sell positions don’t look good at the moment as there is no clear signal. Of course, you can open long positions, but I would rather wait for a signal. So, currently I’m not trading EUR/USD.
The downward movement will be cancelled after the price breaks through the level of 1.2145.
On the GBP/USD pair, I expect to see an upside pullback just as with EUR/USD. But we need to wait for a signal here as well. I think it will be generated later in the day or tomorrow morning. The downtrend on the pair will end if the price breaks through the level of 1.3668.
Technical outlook for EUR/USD
The pair is fluctuating on the H4 and H1 time frames, which is not ideal for trading. It sometimes happen when the price is about to reverse. Now it seems to be changing its direction from the upside to the downside. Yet, it’s too early to say for sure that the uptrend has finished. I think that this is just a phase of correction, and the price will return to the upside several times. So, bulls may still surprise bears this week.
So far, the bearish trend remains strong. Let’s wait for the European session.