Yesterday on the Trading Sniper video we mentioned the EUR/USD, which broke the first out of four important supports. Today we are even deeper, below the second one and attacking the third one. Chances for a further drop increased vastly.
Current situation looks as follows: sellers managed to break the up trendline and lower line of the channel up formation (both blue). Today, they are using this second line as a resistance. That dis-activates this formation and removes a strong point from the bullish camp. What is left for them? We do have a horizontal support on the 1.113 (orange) and the red line connecting recent lower lows. The first one seems more important at the moment than the second one. That is why if you are looking for a definite sell signal, you should look somewhere below this orange area. If the price will get there, that will be an interesting opportunity to go short.
Better sell on the resistance (now) or wait? In my opinion it is always better to wait for an extra confirmation to gain extra probability. Now, we touch the resistance but for a sell signal we need a bearish reaction there. We need a candlestick formation showing us that supply woke up there. Only the fact that the price is there, touching that level is not enough. On the market, patience is usually rewarded, so it would be better to wait for a breakout below the 1.113 support.
