EUR/USD analysis for February 08 2021 - Rejection of the neckline and potential for the downside continuation towards 1.1950

Dennis Gartman: Inflation is on its way Gartman speaks to Bloomberg Investors should buy gold in euro terms

During his prime, Gartman was known as the commodities king but now he just offers a couple of thoughts on the market since retiring the Gartman Letter in 2019.

Since July last year, he said that inflation will be the economic reality of 2021 and he had touted gold as being 'undervalued' when trading below $1,800 at the time, so he's getting a bit of vindication at least.

Further Development

Analyzing the current trading chart of EUR/USD, I found that there was the perfect test and reject of the neckline of Head and Shoulders pattern, which is good sign for further downside continuation.

My advice is to watch for selling opportunities on the rallies with the first downside target at 1,195 and 1,1810.

Stochastic is in overbought zone, which is another indication that there is potential for the downside movement.

Key Levels:

Resistance: 1,2055

Support levels: 1,195 and 1,1810.