Free EURUSD technical analysis & signals: Time to go Bearish on EURUSD

The forex Euro Dollar currency pair has been testing the Fibonacci 61.8 level since October 1^st 2011 on the monthly chart after the bears successfully broke that level and bushed the price down, but on
each occasion the bulls tried to bush the price up above the Fibonacci 61.8 level they lost the fight to the bears that then bushed the price down.

Forex EURUSD Monthly live chart

Now, in my technical analysis of the forex Euro Dollar monthly chart above, you will see that the bulls tried to break above the Fibonacci 61.8 levels in both A, B, C and D attempt as technically analysed on the EURUSD monthly live chart above but the bulls ended up losing the fight to the bears on each occasion. In C and D, the bulls tried to break above 1.38669 price range (closing price of candle stick A) which is the highest closing price they have reached since October 1^st 2011 as shown on the live chart. But, in the two attempts they failed to close above the closing price of candle stick A allowing the bears to take control again.

So, what should we expect from the Euro Dollar currency pair over the coming months? We should expect a bearish trend over the next few months because a major trend reversal is around the corner. When we take a look at the forex EURUSD monthly chart above, you will see that candle stick BCD has been trying to break a particular level. Those levels are the Fibonacci level 61.8 and the highest price the bulls have been able to reach since October 1^st 2011. Not only that, candlestick B and the next candle stick following it and candle stick D closed as a doji. Candle stick B and C tried to close above the Bollinger band upper band but ended up closing below it. These are the first sign of weaknesses reflected in the Euro Dollar monthly chart suggesting a major trend reversal in the EURUSD currency pair.

Now, let’s take a look at the weekly chart to see if it will also suggest a bearish trend reversal.

Forex EUR/USD weekly chart

In the technical analysis of the Euro Dollar weekly chart, it clearly suggests that the bulls are tired of pushing the price further up and they are handing the baton over to the bears. In candle stick B above, you will see that the candle stick peered and closed above the Bollinger band upper band and also peered but closed below the Fibonacci 61.8 levels.  Candle stick C tried to go above the closing price of candle stick B but ended up closing below the closing price of candle stick B. in candle stick D, it successfully closed above the closing price of candle stick C but was stopped by moving further up by the Bollinger band upper band and the next candle stick was a healthy bearish candle stick which suggest that the bulls can no longer bull the price up and are giving up in the fight to bush it further up. In B, C and D attempt to go further up, you will see that they were all stopped by the Bollinger band upper band as they all tried to make a higher high.

 Now, we know where the price may go next, so how do we take our positions? Let’s take a look at the technical analysis of the EUR/USD daily live chart for the answer.

Forex EURUSD Daily Chart

Forex Daily chart of EUR/USD

When the trend line as shown in the forex Euro Dollar daily live chart above gets broken, we go short and our take profit should be at 1.33485 or 1.28059