• EUR/USD bears moving in around the cycle lows. 
• Bears in the verge of taking the euro to fresh lows, but the daily M-formation is compelling. 

The price of the euro has been shunned yet again by the bears in an attempt to correct from the cycle lows of 1.0470 this month so far.

The bulls met fierce opposition at the start of May when the price was rejected from a corrective high of 1.0641 in the face of renewed US dollar strength. The bulls have been unable to recover from the sell-off and there are prospects of a downside continuation for the forthcoming days ahead. 

As per the prior analysis, EUR/USD Price Analysis: redistribution taking shape?, the EUR/USD price remains in a consolidation phase and it is yet to be seen if this is just a respite or accumulation. However, the price action is leaning more and more bearish as the week moves along:

EUR/USD H4 chart

From a 4-hour perspective, the price could be on the verge of a move lower:

EUR/USD daily chart

From a daily perspective, however, a move lower will leave a bullish reversion chart pattern behind as follows:

As illustrated, the M-formation would be something to note and would require management in case of a move back higher to restest the old support area, or the neckline, of the M-pattern.