EUR/USD: downward correction is about to start
There’s a bullish “Double Bottom”, which led to the current upward price movement. Finally, bulls faced a resistance at 1.1270, so we’ve got a local consolidation. Therefore, the market is likely going to reach the nearest support at 1.1232 – 1.1220 in the short term. If a pullback from this area happens, there’ll be an opportunity to have another bullish rally towards a resistance at 1.1282 – 1.1324.
As we can see on the one-hour chart, there was a consolidation between the 55 Moving Average and the closest support at 1.1145. However, bulls came back into the market, so we’ve got an achievement of a resistance at 1.1251. So, it’s likely that buyers are going to reach the next resistance at 1.1270, but if a pullback from this level arrives, then a downward correction becomes possible.