Trading Scenario: As we look into the charts now, EURUSD found strong resistance at 1.2900 level, failed to break it and fell down to 1.2800 support level. EURUSD is ranging inside a 150 pips range.
It also seems to be forming a Head & Shoulders pattern, which is a reversal pattern, suggesting further downward extension likely to be expected if the pair was able to break below neckline, where we have significant support at 1.2750 level. Daily charts still showing bearishness by two consecutive days of lower close and lower low's. We still have bullish trendline support on this pair.
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EURUSD has a minor support at 1.2800 level, break below may push this pair to 1.2740 support, break below that significant key support level could push this pair targeting 1.2600, 1.2420 & 1.2200.
EURUSD is making a correction in the current downtrend and it has lot of resistance, so further downward extension is likely to be expected after that break of support at 1.2740. The current correction on charts seems to be forming a bearish flag on 4 Hours chart.
Entry Strategy: Selling rallies in downtrend at our suggested resistance levels
Trade Suggestion: Go short if price was able to break below 1.2740, targeting 1.2600, 1.2420 & 1.2200.
Alternatively aggressive traders look to go short by the break of 1.2800 level targeting 1.2740, 1.2600, 1.2420 & 1.2200.
Trend Direction: Bearish
Trend Reversal Level: 1.3310
Key Support Levels: 1.2800, 1.2740, 1.2700, 1.2600, 1.2420, 1.2200
Key Resistance Levels: 1.2922, 1.2960, 1.3000, 1.3040, 1.3105