EUR/USD 4H Chart: Rectangle

In case the common European currency fails to contain losses around the rectangle pattern's lower horizontal trend-line, which is created by the Sep low at 1.1096, we may observe considerable losses occurring in the next few days. The only reliable support on Friday is offered by the monthly S1 at 1.1022, which is followed by monthly S2 at 1.0868. Bearish outlook is shared by 4H studies, while daily ones have changed from strongly positive to mixed in the past 24 hours. On the other hand, views among market participants have changed positively after the pair's sharp decline on Thursday. At the moment bears have only a 2% advantage, down from 10% seen 24 hours ago.