EURUSD breaks major horizontal support

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    The past few days for the euro have been pretty dramatic. All of the pairs with the euro as the base currency are in the red. In this piece, we will focus on the most popular instrument on the Forex market – EURUSD.

    Last week was a real roller-coaster for this pair. In the first half of the week we received a buy signal, which was triggered by the inverse head and shoulders pattern (yellow) and the breakout of the neckline (upper blue). That bullish action got quickly denied and became a false breakout pattern. Instead of the iH&S formation, we finally got a flag (green lines). EURUSD broke the lower line of this pattern, which brought us a proper sell signal.

    The beginning of this week brought us a further slide, which broke an important horizontal support – the psychological barrier at 1.13 (lower blue). As long as we stay below this line, sentiment will remain negative. According to the price action rules, that area could soon be tested as a new resistance. Any bearish price action on the blue line should be treated as an invitation to go south.

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    I'm looking at your analysis and see some great value. What is your opinion on the current pullback of the pair? I think that no one would have expected back in 2018 the weakness of dollar in front of the Euro due to the pandemic. I'm constantly looking for new ideas when it comes to my trading positioning. I also like trading on my forex account other pairs that include the pound as I see more volatility and for the London open that I'm mostly interested it seems ideal. Lately I've been more and more into Renko charts and harmonic patterns and it seems to work great so far.

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    Renko seems like a really interesting strategy for me as well. Your broker seems quite legit. I've heard they pay in a matter of hours.

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    Hi there. I think EUR will go lower.
    P.S. I use forex support and resistance indicator ( ) to analyze FX trending.

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