As we could read in my previous EURUSD analysis the pair perfectly followed up the technical research and it broke through 1.0780 down to 1.0720. I have explicitly stated that traders should be wary about 1.0720 and it was definitely proven today and yesterday. So far 1.0720 has been a tough nut to crack. Good ADP number haven’t shaken the pair much but well, the EURUSD has been dropping prior to ADP and we should see a strong break below 1.0720 for further down.
Technically the pair has made a rounded top pattern and in the mid term EURUSD should print new lows. Have in mind that rounded top usually takes weeks to develop but it can be an early cue of price reversal.
We can also see Weekly camarilla PP which have been completely respected – L5 being the low and the price is currently rejecting off L5 weekly PP, complimenting to -1.0720 number. Because of that we need to switch to Monthly PP and watch the price pivots similarly to Murrey Math octaves now. Until new price levels has been reached Monthly pivots could give us possible near term targets.
A clear close below 1.0720 (H1 momentum with stop grabs or H4 candle close below) should tank the price towards 1.0570 ultimately where we can see another strong support. For trend retracement, 1.0820-30 is POC zone (MPP, E89, previous low) and the price should reject. If it proceeds above 1.0900 we might see another range with possible 2 way trading.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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