EUR/USD is trading at the 1.1807 level trying to hit the major uptrend line. The bearish pressure is strong after the pair escaped from the minor channel, but only a drop below the uptrend line and below 1.17 psychological level will suggest selling.
The uptrend is intact as long as the rate is located above the uptrend line. Still, the failure to close above the 1.2000 psychological level has added some selling pressure. A drop below the uptrend does not necessarily mean that EUR/USD will develop a strong decline.
This is why I have mentioned the 1.17 psychological level as critical support. A drop below will signal a downward correction.
- EUR/USD Trading Tips
Sell EUR/USD after a drop below 1.17 with downside targets at 1.1456 level and 1.1375 levels.
Coming back above 1.19 makes EUR/USD very attractive again. Still, only a breakout above 1.2 will really validate a larger increase.
