Green line- horizontal resistance (rejection)
Red lines- support trend lines (broken)
In a previous analysis on EURUSD we warned traders that the rejection at 1.0285 was a bearish signal. We also noted that we do not expect to see a fourth time test of the horizontal resistance. In yesterday's analysis we noted the importance of the red support trend lines. EURUSD has now broken below these trend lines producing bearish signals. Next support is now at 1.01. A break below this level will be a confirmation that a new downward move is starting. Until then bulls have a few hopes of survival, but current price action is against them.
