Thursday, April 05, 2018
EUR/USD Reached The Strong Support Zone Of The Upward Trend
The depreciation to the support trend line of the upward EUR/USD trend has been expected to happen for some time now and today it finally became a reality.
1.2200-1.2240 is a very strong support zone and my expectation is that here there will be a major struggle between the bulls and the bears before one of the sides takes over.
The pair is yet to reach and break out below the critical 50% Fibo level of the last move north from 1.15529 to 1.25556 and until that happens the scenario for a renewal of the move to the upside will not be invalidated.
I think that in case there is a breakout, however, we can expect a large corrective drop to 1.17 or even lower.
For the moment we should follow how the pair develops in the support zone around 1.2200-1.2240.