The EURUSD is resting on a massive support level.
I first mentioned it on April 14th, but the trend line from the euro’s all-time lows in 2000 is the only thing keeping the currency afloat.
If the EURUSD breaks that support on a monthly closing basis, a run at the 2015 to 2017 lows at 1.0500 is all but guaranteed.
And that could just be the start.
I’m still of the belief that a monthly close below 1.0750 sends the euro back to its all-time lows just above 0.8000.
Will it happen?
I don’t know the answer to that. Nobody does.
What I do know is that the EURUSD will remain vulnerable while below wedge resistance that extends from the March 27th high.
The 4-hour wedge below illustrates the recent consolidation.
With that in mind, you can see why the EURUSD bounced on Thursday as it was testing the bottom of this wedge pattern.
As for key levels on the way up, keep an eye on 1.0825 and 1.0890.
I remain short the EURUSD from last Friday, which I also announced in the Daily Price Action member’s area.
That position is currently up 160 pips. I’ll look to add to it following a break of the multi-decade trend line above.
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