Since the start of the year, the price action of FX:EURUSD has been clearly confined within a descending triangle, with a base formed at 1.07. Recently, the pair reversed once again from this crucial level and, at the time of writing, is trading at 1.0856, close to the descending trend line of the triangle.
A rise towards the 1.09 resistance level could provide bears with a favorable entry point for a new drop towards support. However, the negation of this scenario occurs if the price closes towards 1.1 on a daily basis.
Trade closed: target reached
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EurUsd dropped strongly yesterday and reached support level
The descending trendline looks solid, as the price has been rejected multiple times in the past, which is a sign of bearish momentum coming to the market. Let's see how the price reacts to the level as it approaches. I'll keep an eye on it.
Mihai_Iacob
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@ICmarkets, yes, is interesting to see what s doing now with the price back as support. Thanks for imput
JoeChampion
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Should fall yes, if CPI comes hot tomorrow we will see some extreme dollar strength!