EURUSD has approached the key level of 1.0926 as the USD strengthened significantly.
In order to make a decision on this market, we need to see how price reacts to the level.
WILL IT BREAK OR BOUNCE?
The USD is clearly strong and the EURO is clearly weak suggesting that a breakout lower is likely however
because this is such a key level we could see traders take profits on any short positions which would see
the market reverse.
IF the market starts to form bullish price action here in the form of a double bottom pattern we could look
for potential long opportunities.
IF the market breaks through and closes below the level a minimum of 2 times we can expect the downtrend
to continue.
In order to make a decision on this market, we need to see how price reacts to the level.
WILL IT BREAK OR BOUNCE?
The USD is clearly strong and the EURO is clearly weak suggesting that a breakout lower is likely however
because this is such a key level we could see traders take profits on any short positions which would see
the market reverse.
IF the market starts to form bullish price action here in the form of a double bottom pattern we could look
for potential long opportunities.
IF the market breaks through and closes below the level a minimum of 2 times we can expect the downtrend
to continue.