Looking at the chart H4, you will see that from the beginning of the year we have to deal with growth trend. During this period, each new low and high formed on increasingly higher level. The only exceptions are minor lows from 11th and 30th January, but in both cases after temporary breach of the structure appeared rapid response of demand. Currently, since February 2nd lasts decline which in such a system should be adopted as a correction. Interestingly, the last three adjustments have more or less similar range, which has just been reached for the fourth time. So there is a potential chance to bounce up, although to the previous low we still have a lot of space and exceeding the range of often repeated adjustments will only be an initial signal of a possible weakening of trend.
Situation seen from somewhat distant perspective, seen on the daily chart is completely different, and indicates that this year’s growth may be only a correction. The broader trend is in fact bearish and since the beginning of May last year, we note series of increasingly lower-lying highs. If the situation were to repeat itself this space for increases no longer exists, because the last high was set very close to the previous one. In addition, we are now in zone of resistance, which was recently respected. Adding to this fact of similar ranges of price movements in recent months, we get a series of arguments for declines. It seems that the breaking this year’s trend seen on H4, can be regarded as a signal to return this pair EUR/USD to the main, long-term downtrend.
