EUR/USD long-term technical analysis
ECB and The Fed might be under focus as the market waiting for a change in interest-rate policy. However, the main issue at hand is the trade war between U.S-China. Recently, the trade war situation getting worse after new tariff implementation by U.S. The Trump administration raised tariff from 10% to 25% and suggesting they will not rush to reach an agreement with China.
China responded by preparing retaliation tariff against the implemented tariff. We might not see the end of the trade war yet in the short-term and EUR/USD might continue moving bearishly.
Click here to see EUR/USD long-term analysis April 2019
The pair could not close inside the purple area and we have lower close on the monthly chart. No bullish sign yet from EUR/USD but previous month candlestick is a neutral candlestick. This month, not much movement from the opening level yet and it is possible EUR/USD will close the month near its opening level.
Lower low and lower high continue printed on the weekly chart which suggests the bearish trend will continue. We draw a bearish channel on the weekly chart and project the pair movement inside the channel. As long as there is no breakout then EUR/USD expected to move inside the channel with 1.085 as the target.
It is not the time to switch to the long-side yet as EUR/USD constantly move inside the bearish channel. Short positions are favored at the current time and traders could look for short positions whenever bullish correction happen.
The overall trend is bearish and no reason to switch to the long-side yet. The bearish channel on the weekly and daily chart is the level where traders could look for short positions.