The closing price reversal top in the EUR/USD market is set up for a follow through break into a major support cluster.
Techically based buyers may enter in the support zone looking for a retracement rally and more.
Gann Angle Analysis
Thursday's sell-off has the market in a weak position under a downtrending support angle from the all-time high at 1.6019 (04-22-08) at 1.5754 today.
Additonal resistance is at 1.5869 and 1.5889.
Although there is an uptrending angle from the 1.3359 (08-16-08) main bottom at 1.5669, the downside momentum is expected to push this market down to 1.5602.
Swing Chart Analysis
The main range is 1.5302 to 1.5909 with a retracement zone at 1.5606 to 1.5534.
Trade Analysis
The main trend trend is still up despite the hard sell-off. The first support cluster is 1.5606 to 1.5602. Look for strong buying to enter in this price zone.
Because of the closing price reversal top, some traders may chose to trade the short side. If the market stabilizes at 1.5606, then look for a rally back to 1.5758 - 1.5893 for the best counter-trend selling opportunity.