Breakdown of the Support
EURUSD has been on an up and down cycle for the start of the week in anticipation of the US Economic updates and news (GDP,etc.) coming out tonight.
The DXY has been holding its ground on the 90 level. Indicating that traders have been very cautious on the strenght of the USD.
From a technical perspective
We can see in the 1H chart, the previous resistance was tested twice before breaking and price started to fall again.
The is already tested twice, if price goes for the third time a breakdown is expected, if the pair follow its usual cycle.
With the upcoming economic data release from the US we expect our price level to be reached during the london and new york sessions.
My Trade Entry:
Sell Entry 1.21950
Stop Loss 1.22250
High Impact News this night in USD - GDP
Stop loss place @ 1.2225
This is a minor resistance line, but if it breaks it could signal a of the price back to a and possibly going to test the new resistance at 1.2260.
Risk Reward is over 2
If my bias is correct and end the week in our TP it could signify a move for the month of June for the EURUSD pair.
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Risk is the only guaranteed thing in the forex market.
Manage your risk properly.