The past few days for the EUR are pretty dramatic. All of the pairs with the EUR on front are on the red side of the market. In this piece, we will focus on the most popular instrument on the Forex Market – EUR/USD.
Last week on this pair was a real roller-coaster. In the first half, we received the 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.
Beginning of this week, brought us a further slide, which broke an important horizontal support – psychological barrier on the 1.13 (lower blue). As long as we stay below this line, the sentiment is negative. According to the price action rules. That area can be soon tested as a newest resistance. Any bearish price action on the blue line, should be treated as an invitation to go south.
