EUR/USD 4H Chart: Channel Down

The pattern started when the pair bounced from 1.2407 and slowed down at 1.2106 after testing pattern's resistance band at 1.2693 and 1.2324. The Stochastic indicator on 1W horizon is sending buy signal indicating that we might see some price correction. The SWFX market sentiment shows that 60% of traders are anticipating appreciation of the pair as well.  Long traders could set the first target at the last week's closing price at 1.2145.  If this level is breached, next targets could be set at recent pattern's support test level at 1.2162 and daily retracement (Fibonacci) level at 1.2196.

Technical indicators on aggregate point at the further depreciation of the pair on 4H and 1D outlooks suggesting that the pair will continue to follow the pattern's trend. Short traders could focus on the daily retracement (Fibonacci) level at 1.2057 and, if the pair maintains the same momentum, on the pattern's support band at 1.2017.