Wednesday, October 19, 2016

It Looks Like EUR/USD Will Continue Dropping

The EUR/USD pair is testing the support at 1.0940 yet again after testing it twice more since June this year.

The pair has rebounded to test the flag breakout in an almost textbook way and during that test (in which the support trendline has turned into a resistance) it reached 1.1366, which is higher than the breakout level at 1.1129.

The limit of the flag that formed between 25th November 2015 and 19th June 2016 hasn’t been reached yet, but if the pair does reach it, it should fall to 1.0260, which is below the low that it reached on 13th March 2015 – 1.0462.

Of course, we should keep in mind that this is a weekly time frame analysis and even if the pair reaches said limit, that won’t happen in the near future.