EUR/USD continues to decline after falling below the 1.18 psychological level. It has escaped from an up channel but it is unlikely to reverse upwards. The bearish scenario could be invalidated tomorrow after the ECB.
Technically, the pair has shown some exhaustion signs lately but the outlook was bullish as long as EUR/USD was traded above the 1.18 level. Yesterday's valid breakdown below this obstacle could attract more sellers in the short term
EUR/USD is on a declining path after dropping from the up channel's body. Also, breaking below the 1.18 level makes the pair very attractive for sellers. The upper median line (uml) is under bearish pressure.
As you already know from my previous analyses, a drop and stabilization below the 1.1700 level suggests selling as EUR/USD should develop a significant corrective phase.
- EUR/USD Trading Tips
EUR/USD could register a sharp drop after closing below the 1.17 level. The 1.1495 could be used as a downside target.
A further drop could be invalidated by a rejection, false breakdown below the upper median line (uml), and below the S1 (1.1742) level. If you want to go long, you should wait for a valid breakout above the first warning line (wl1) of minor descending pitchfork.
