How are you my trader friends?
Last week we were analyzing the EUR/USD pair, where we found it struggling to recover towards the 1.20 price zone. But this was not to be.
I had proposed a bearish scenario with a target towards the next support at 1.1840. The scenario has been perfectly fulfilled.
The price is currently at the 1.1840 support zone and breaking the one-day 200-period moving average (yellow line), as shown below.
This is bad news for the EUR/USD, as this breakout could be confirming a possible trend reversal.
I think it is best to stay out of the market at this time and wait for the close of this daily candle. We should wait for a convincing confirmation of a break below 1.1840 support and the 200 moving average.
If a convincing breakout is shown, price in the coming days or weeks could move down to the next supports at 1.17 and 1.16:
Failure to break below the 200-period moving average and 1.1840 support, could lead to price holding and a possible recovery to the 1.1990 and 1.20 ceiling:
I hope you find this information useful. Best regards colleagues! 馃憢
The information provided in this publication should not be considered as an investment recommendation. Trading cryptocurrencies, forex, stocks, among others, is risky.
