EUR/USD Total Bearish ZigZag Could Break Next Support

February 21, 2017 13:16

After a strong reading of PMI data across the major European economies, the EURUSD continued its bearish move ahead of this week's FOMC minutes due to be released. The tone of the most recent media relating to FOMC suggests hikes sooner rather than later, so watch for a bullish move on the USD under the Trump administration.

The EUR/USD has made a nice thrust through breakout point shown in Session Recap webinar this Monday. Fortunately for bears, they are in full control now and the EUR/USD might even drop to test weekly L5 in upcoming days at 1.0450. In case of retracement traders should watch for 1.0580 where we can see clear confluence (previous breakout spot, ATR Pivot, L3). Total Bearish ZigZag is a pattern that perfectly follows retracements in downtrend with clear thrusts and pullbacks and in this case its valid for both POCs. POC2 (WPP, ATR top, Order block) comes within 1.0605-20. Rejections target 1.0525. Clear 4h close or 1h momentum break below 1.0520 targets 1.0450.

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