On my Weekly Markets Analysis I mentioned that last week's False Break to 1.14 means that this pair will reach 1.12 and test its 200 days MA.
Well, EURUSD did more than that and reached near 1.11, below the 200 days MA and now testing the 50 days MA that looks like barely manage to hold it.
As long as $EURUSD is inside the , I continue to look for the opportunities, although closing below the 200 days MA is a warning signal.
There are two zones that may become an interesting buying zones:
1. If $EURUSD will climb back up above 1.12, creating a false break to the 200 line.
2. If $EURUSD will decline towards 1.1 and complete a pattern right on the of the .
The second option, although it involves the daily uptrend line and , still has to confirm it's longer term potential by climbing above the 200 line so until it'll do so, I'd focus on 1.12 as initial target zone for the 1.1 long entry.
The first scenario means that this early week's declines may have been another squeeze before a major move that will try to break 1.14 on its way to complete the near 1.18.
Stop loss for this setup should be below 1.11.
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