FX.co ★ EUR/USD heading towards 1.0500

EUR/USD New Downtrend!

The EUR/USD pair dropped below the uptrend line and below the 1.0771 former low which represented downside obstacles, signaling that the upward movement ended and that we may have a new downside movement.

Personally, I've drawn a downtrend line which is seen as an upside obstacle. As long as the price stays below it, the EUR/USD pair is expected to approach and reach new lows.

EUR/USD Trading Conclusion!

Dropping below the uptrend line and through 1.0771 was seen as a selling opportunity. As long as the instrument stays under the minor downtrend line, the rate could approach and reach the 1.0500 psychological level (former low).