EUR/USD dropped unexpectedly in yesterday's session and now it seems vulnerable to slide further. It's located in the seller's territory as the USDX has finally managed to reach the 93.81 level again.
Validating the Head & Shoulders pattern makes EUR/USD very attractive for the sellers. This pattern could signal and announce a 250 pips drop in the upcoming period. EUR/USD is trading at 1.1732 level, a drop below 1.17 could confirm a broader drop.
As you can see on the H4 chart, EUR/USD has failed once again to stabilize above the first warning line (wl1) of the descending pitchfork. The bearish engulfing and the aggressive drop below 1.18 and through the up channel's support signals a potential down reversal.
The pair is traded under 1.1753 static support and right below the S1 (1.1750) indicating further drop with an immediate target at 1.17 psychological level.
- EUR/USD Trading Tips & Conclusions
You can sell a bearish closure below 1.1730 yesterday's low or wait for a valid breakdown below 1.1700 - 1.1794 area. The 1.1495 could be used as a potential target. The Stop Loss could be placed above 1.1871 yesterday's high.
