EUR/USD Has Formed Bearish Equidistant Zig Zag Channel
Admirals | Aug 31, 2015 06:19AM ET
Most important release for EUR last week was German inflation, which came out to be better then expected, while USD was boosted by a better-then-expected GDP (3.7 %), which is a sign of US economy expanding. EUR/USD dropped to 1.1170 zone on end of month (EOM) profit taking.
Technically, EUR/USD is contained within a bearish equidistant zig zag after touching 1.1700 zone and we can see that 1.1250 couldn't have withstood bearish pressure. POC (H4, 61.8, EQ channel top) comes in 1.1250-60 zone, and there could be rejection towards 1.1170, 1.1105 and 1.1030. We could expect some buying in the lower zone (1.1105 / 1.1030). MACD is showing a slow grind within its own channel while still below 0 line, which indicates bearish momentum even on H1 timeframe. Bearish zig zag is valid as long as 1.1310 is not broken.
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