As we have expected the EUR/USD retreated to the 1.2440 level, then it bounced back to reach the 1.2519 level as a correction step but this is not a signal of rise.
We also notice on the 4 hours chart, that the prices succeeded in breaching down the Neckline level to form the Double Bottom and breaching down the bottom level of the descending channel and decreased to reach the expected target of $1.2440, and this confirms the bearish trend and the next target would be towards the 1.2406-1.2380 area.
As we have mentioned in our Daily Market Analysis of yesterday that the prices are in the step of forming the Double Bottom as indicated in the daily chart.
Concerning the 1 hour chart, the following indicators:
MACD, CCI, SAR, and Aroon give us a signal of upward movement on the short term .So we expect that the Euro will recover after it would test the 1.2516-1.2530 area , this area represents a great opportunities to enter a sell positions and we advice the traders to enter a stop loss at $1.2590 which represents the main resistance level.
Nice trading all