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EUR/USD drops as expected

EUR/USD drops as expected

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.

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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 conclusion

A 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.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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