FX.co ★ EUR/USD: 1.0838 key obstacle

EUR/USD New Downtrend!

The EUR/USD pair registered a strong downside movement and now is located at 1.0849. You can see that the price dropped below the uptrend line indicating that the uptrend ended and that the sellers could drag it toward new lows.

Personally, I've drawn a downtrend line which stands as an upside obstacle. As long as it stays below it, the rate could extend its downward movement. From the technical point of view, the 1.0837 former low represents a downside obstacle.

EUR/USD Trading Conclusion!

Dropping and closing below 1.0837 validates more declines and is seen as a selling opportunity.