Euro’s Slippery Slope: Ready to Slide or Catch a Break?
Looking at the EUR/USD chart, we are clearly seeing the market respecting key support and resistance levels. The price is currently hovering around the 1.1016 zone, which is just above a significant support level at 1.0973. The overall structure has been bearish, with the price consistently making lower highs and lower lows, confirming the downtrend that has been in play since mid-September.
Right now, we could expect the pair to either continue pushing lower or consolidate before a move. If the price breaks below the 1.0973 support, we could see a further drop towards the 1.0910 area, which is the next significant support level. On the flip side, if the bulls manage to reclaim the 1.1032 resistance, a move back to test the 1.1096 zone could be in play.
In terms of a trade setup, I would personally wait for a retest of the 1.1032 level to consider a sell. If price gets rejected at this level and forms a clear bearish pattern on the lower timeframes, that would be a solid confirmation to get in on the short side. My target would be around the 1.0973 area with a stop slightly above the resistance at 1.1032.
Right now, we could expect the pair to either continue pushing lower or consolidate before a move. If the price breaks below the 1.0973 support, we could see a further drop towards the 1.0910 area, which is the next significant support level. On the flip side, if the bulls manage to reclaim the 1.1032 resistance, a move back to test the 1.1096 zone could be in play.
In terms of a trade setup, I would personally wait for a retest of the 1.1032 level to consider a sell. If price gets rejected at this level and forms a clear bearish pattern on the lower timeframes, that would be a solid confirmation to get in on the short side. My target would be around the 1.0973 area with a stop slightly above the resistance at 1.1032.
Sheena Lynne
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.