EUR/USD jumps to 1.1890 and buyers are struggling to breach the resistance level. This level was tested on 17 November, and once again it failed to overcome the area on 18 November. Therefore, EUR/USD rebounded from the resistance zone and broke below the supporting bullish ascending channel. The breakout of previous swing low and supporting trend line on the hourly chart signals an early hint of on upward trend reversal.
In the previous article we warned that the bullish movement is unlikely to resume if a failure to breach the resistance or price settlement below the trend line change the current uptrend to the downtrend. Hence, it is not advisable to buy in the area of the horizontal channel 1.1900.
This morning, the price touched 1.1830 and we might see a short pullback move today. The price must settle below this level in order to form a condition to decline further. Trading for a bearish move at this time is relevant after a pullback is confirmed since there is a breakout of the uptrend. Thus, traders are advised to wait for a reversal or sign of buyers' weakness below 1.1860 which coincides with 50% retracement in order to open short positions with targets at 1.1820 and 1.1780.
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