EUR/USD – Down trend in 4 hours chart

Trend is bearish in EUR/USD currency pair, four hour time frame. As I have suggested past week during my daily Live trading room session, market is falling down on a short term basis to complete Bearish Impulse Elliott Wave pattern in weekly time frame and traders should look for a short trade in smaller charts. So, all those Forex traders who have followed the analysis have made the right decision as the price has descended. Strong key resistance level is present at 1.0654 price level.

Be sure to check out daily Forex market updates via Live Trading Room. In my opinion, price action in EUR/USD is probably trying to print a bottoming pattern known as Ending Diagonal. So, caution is required to sell at the market because price action could reverse back up and we may see a short term bullish trend in EUR/USD 4 hours chart.

A good idea is to first wait for the price action to print a new low before going short in EUR/USD currency pair. However; if price of EUR/USD currency pair breaks above 1.0654 critical resistance level then I might like to stay out of the market and re-examine the four hours chart of EUR/USD currency pair.