On Monday I wrote that the EURUSD looked vulnerable despite recent gains. The single currency was beginning to lean heavily on an intraday support level and was also having trouble moving above resistance at 1.1830.
That 4-hour ascending channel broke down just hours after Monday’s commentary. And despite some strength during yesterday’s session, the EURUSD is selling off aggressively from, you guessed it, the 1.1830 handle.
Now, this is where we need to go back to a level I mentioned Sunday. I also pointed it out as support in the June 4 post.
There is a trend line that extends from the 2017 low that is under pressure as I type this. In fact, there are a couple ways to draw this level; the position you see below is one of them.
If the EURUSD closes below 1.1675 today (remember, I use New York close charts which you can get access to here), it will reinvigorate the downtrend that began on April 20.
I do think there’s a good reason to keep the 1.1575 support level on my chart based on the price action between July and November of last year. However, I also think that a close below 1.1675 would expose the recent lows at 1.1510 and perhaps even 1.1480.