EURUSD: Key Level For Potential Reversal Back Toward 1.2000.

EURUSD update: This pair is poised to go lower based upon the bearish momentum in play on this time frame. The 1.1764 level is still in play and we are watching price action around this area carefully for a bullish reversal.

On S.C., we evaluated this market on Friday and described details of a potential swing trade long. That trade idea is still plausible, but can be negated if price pushes dramatically lower.

Keep in mind, current price action has been fluctuating within the 1.1937 to 1.1772 support zone which is the .618 area of the bullish structure that peaked in January. The fact that price has penetrated this wide zone is certainly a bearish sign, but if 1.1764 holds, and the bearish trend line breaks, a retrace back toward the 1.1930 area is within reason.

If bearish momentum continues without any interruption, then this pair can retest the 1.1630s before any supportive price action would be worth evaluating.

Remember, we are not making predictions, we are simply evaluating probabilities. And a trade signal off of this reversal zone is contingent on a reversal formation. No formation, no trade. The market decides, all we do is measure, recognize and adjust. Keep an eye on S.C. to see if a signal goes off in this market.