EUR/USD registered strong downside movement after dropping below 1.1405. You know from my analysis that the currency pair could develop a larger drop after failing to stay above the uptrend line.
Its failure to reach and retest of the 1.1480 higher high signaled exhausted buyers and a new sell-off. The historical level of 1.1235, a former low, stands as a static downside obstacle.
EUR/USD trading conclusionA drop below 1.1405 represented a selling opportunity. Still, after this massive drop, we cannot exclude a temporary rebound. A minor growth could bring new selling signals. Despite a minor growth, EUR/USD could still approach and reach the next downside obstacle at 1.1235.