The price action of EURUSD retreated back to a broad consolidation range spanning between the major support level at 1.12850 and major resistance at 1.13850, following a false breakout.
The dropdown is currently taking the shape of a descending channel, and the price action is temporarily consolidating just above its middle line. Given that the underlying bullish momentum is waning, as demonstrated by the falling histogram of the MACD indicator, the dropdown is likely to be extended towards the lower limit of the consolidation range.
That is why bulls should not consider entering long before the price action probes the 1.12850 threshold.
The dropdown is currently taking the shape of a descending channel, and the price action is temporarily consolidating just above its middle line. Given that the underlying bullish momentum is waning, as demonstrated by the falling histogram of the MACD indicator, the dropdown is likely to be extended towards the lower limit of the consolidation range.
That is why bulls should not consider entering long before the price action probes the 1.12850 threshold.
