By: Colin Jessup
The Daily candle on the EUR/USD has formed as a nice bearish continuation candle closing at 1.3571, well below our support zone at 1.3650, after reaching a daily high of 1.3797. For 2 days price was trying to break below, and stay below 1.3650 but couldn't hold below this level and closed on the support side of the zone instead. With today's action, price has finally closed below this level and has turned it into resistance as a result. If the bears can keep the trend going, we will encounter more support at 1.3495 and the 1.3433 below that. Should the bulls manage to resume the reins, we will see strong resistance at 1.3650, 1.3744 and 1.3900 above that. It is more likely that we will continue southward and make a run for the monthly support zone at 1.3270, but as most traders know...anything is possible.
Happy Trading!
