Even with the downward channel broken, I still prefer to short this pair towards 1.05. with targets at around 1.0850, 1.0740 - 1.0715, 1.0520 as long as 1.1 holds.
A clear break above 1.1 could signal a potential move higher towards 1.14 in the longer term.
As long as 1.1 holds we can see further downside towards the previously mentioned areas.
First target would be the previous upper zone of the channel 1.0850.
Note that this pair is heavily traded and is also used as an instrument by two powerful and influential central banks, the Fed for the dollar and the ECB for the euro. They have diverging interests (Fed, rate hikes, ECB rate cuts) which means that this pair can make strange moves of one of the two parties believes it's in their best interest to down or up talk their respective currency.
A clear break above 1.1 could signal a potential move higher towards 1.14 in the longer term.
As long as 1.1 holds we can see further downside towards the previously mentioned areas.
First target would be the previous upper zone of the channel 1.0850.
Note that this pair is heavily traded and is also used as an instrument by two powerful and influential central banks, the Fed for the dollar and the ECB for the euro. They have diverging interests (Fed, rate hikes, ECB rate cuts) which means that this pair can make strange moves of one of the two parties believes it's in their best interest to down or up talk their respective currency.