EUR/USD increases after failing to stabilize below the 1.2110 level. It could come back to test and retest the downtrend line. You already know that the pair maintains a bearish outlook, it could drop anytime as long as it stays below the downtrend line.
Dropping again below the 1.2110 level could really signal a larger drop. The current growth could be only temporary after its last sharp drop.
Trading Conclusion!
Sell EUR/USD if the price drops again below 1.2110 and below 1.2095 former low. The major downside target is at the 1.2000 psychological level.
We could buy EUR/USD only if the pair jumps above the downtrend line and if it passes above the former highs.
