EURUSD: Pair Drops Below Bullish Trend Line, Bears Get Stronger

The greenback continued to rise on Friday, supported by Wednesday's FOMC decision and Thursday's relatively solid macro numbers, with the EURUSD pair seen at 0.20% lower during the London session and, changing hands around 1.1625.

Earlier in the week, the pair pushed higher to the 1.18 level, but failed to breach it a couple of times, which caused some frustration among the bullish camp and bulls retreated. Moreover, it appears that the rounding top pattern on the two-hour chart is a reversal pattern. When the price dropped below 1.1725, this pattern was confirmed and it sent the euro lower.

Also, the price also fell below the advancing trend-line, which wiped out the bullish view. The immediate target for bears could be in the 1.16 zone and if not held, further decline to previous lows at 1.1530 could occur.

On the upside, should the euro recover, the first intraday resistance could be located at 1.1650 and, if broken, bulls could push the EURUSD pair back to 1.1730, where the broken trend line and previous lows could converge.

However, for today, the outlook seems bearish as long as the euro stays below 1.1650.

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