DavidBelleFX

EURUSD Could target 1.0570 - Big M pattern

FX:EURUSD   Euro Fx/U.S. Dollar
EURUSD             has dropped on Greek parliament vote and we can suspect that the vote has already been priced in within the context of choppy price action during previous month. Syriza leader and Prime Minister of Greece required the support of PRO-EUROPEAN opposition to push the measure. Adding to that, civil servants and pharmacist held a strike and 30 people were detained. All those things negatively reflect on EURUSD             as safe heaven flows naturally support the greenback.

Technically on the chart we can see HUGE M 1 2 3 bearish pattern forming and at the moment of writing the price is trying to retest 1.0860-50 region. March trend line has already been broken and the price is approaching L4 support, so we have a confluence in the 1.0850-30 zone. Daily close below will mark breakout of point 2 of M pattern and that could lead the pair to 1.0570 in upcoming weeks. For all those who are not familiar with M bearish pattern , point 2 is the breakout point. However the price should grind slowly as we are talking about Daily chart with Monthly camarilla pivot points applied. MACD is also making steady bearish histograms and both lines are below 0 line which indicates bearish momentum.

Only the daily close above 1.1025 could return the pair into NEUTRAL-to BEARISH territory and would negate an immediate impact of M pattern.

Thanks to @TarantulaFX (Twitter)

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http://www.admiralmarkets.com
Good analysis but tha support at 1.08 should be broken easily... EUs next hope is at 1.07515... if that breaks expect 1.05
Reply
Hey, thanks for the reply. I identified the support at 1.0860-50 level purely because it would indicate a break of the M pattern and a possible continuation downwards.
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