On May 11th, I wrote about a potentially significant breakdown from EURUSD.
The pair broke channel support from last September, a level I’ve mentioned several times in recent months.
The target following that breakdown was the 1.0760 area, which was tested on the 18th.
So far, the EURUSD is holding above 1.0760 and treating it as support.
However, a sustained break below that mark on the higher time frames would trigger the next leg lower toward 1.0500.
With that said, I have to respect the potential for a bounce while above 1.0760 on a daily closing basis.
Key resistance is 1.0830, so we may see a deviation above that before more weakness.
Whether we get another bounce from 1.0760 first or not, I think we see EURUSD revisit the 1.0500 year-to-date lows in the next few weeks.
The reasons for that are the recent breakdown from the September channel and the 500-pip range since March.
This is a range until proven otherwise, so a run at the 1.0500 range lows in the coming weeks makes sense.
But again, a sustained break below 1.0760 is required to make that happen.
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My income is very low and I am unemployed, I am trying to earn something by trading
I’ve a strong feeling it’ll break through and move lower… sadly, the market has no regard for those kind of things. So, we wait (but I’m in already😉)