EURUSD has formed bearish equidistant zig zag channel

Most important release for EUR last week was German inflation which came out to be better then expected, while USD was boosted by a better-then-expected GDP (3.7 %) which is a sign of US economy expanding. EURUSD dropped to 1.1170 zone on end of month ( EOM ) profit taking.

Technically EURUSD is contaied within a bearish equidistant zig zag after touching 1.1700 zone and we can see that 1.1250 couldn’t have withstood bearish pressure. POC ( H4, 61.8, EQ channel top ) comes in 1.1250-60 zone and there could be rejection towards 1.1170 , 1.1105 and 1.1030. We could expect some buying in the lower zone ( 1.1105 / 1.1030 ). MACD is showing a slow grind withing its own channel while still below 0 line which indicates bearish momentum even on H1 timeframe. Bearish zig zag is valid as long as 1.1310 is not broken.

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