EURUSD sellers followed through in a big way last week. Last Sunday we mentioned the close below the April 2017 trend line near 1.2300.
The big question at the time was whether or not Euro bears would come out to play. After all, sellers haven’t had much luck since the EURUSD began its ascent in December 2016.
Last week’s plunge of more than 200 pips was our answer.
As expected, the 1.2090 level attracted buyers on Friday. Given Friday’s bounce, we could see buyers take the reins this week. A retest of the 1.2240 area could establish a second opportunity to get short for a move back to 1.2090 and perhaps even 1.1930.
A descending channel forming from the February 16 high and the February 9 and March 1 lows.
