EURUSD has been travelling in a large descending channel marked out in blue, price hit the top and on its way back down it has formed another descending channel inside the other channel. Price recently broke below a strong and well held up support zone.
We believe price is going to go back up to the previous support zone which is now resistance and then make its way down to touch the bottom of the channel. The 0.5 retracement level lines up perfectly with the newly made resistance zone which adds extra confirmation, we have sell limit orders placed at the 0,5 levels.
IF PRICE HITS STL , PRICE WILL MOST LIKELY FOLLOW THE RED LINE.
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PRICE HAS TAPPED THE 0.618 NICELY LIKE WE THOUGHT IT WOULD, NOW WE ARE WAITING FOR THE DROP ALL THE WAY DOWN TO THE -0.27 EXTENSION LEVEL.