Following the strong price movement earlier this month, EUR/USD bounced back to the 50% retracement level and tested it for several days. This ended with a sharp decline last night and today during the Asian trading session.
The target is the monthly low, just like this scenario:
The pair has been trading at lows over the past 5 years, and if quotes decrease according to the pattern above, it is highly likely that the five-year low will be broken.
The best action for this situation is to abandon long positions, and focus on short positions with targets at yearly lows.
This strategy is based on the Price Action and Stop Hunting methods.
Good luck and have a nice day!