Euro may Break the 1.1550 Support Level

[Antony Bishop]

Hello traders, I want share with you my opinion about Euro. The dominant market pressure for the Euro has been bearish since the price failed to sustain its rally to the 1.1920 high. This reversal initiated a significant downward trend for EURUSD, characterised by the breakdown of several key market structures, including the prior upward channel and the major 1.1740 resistance level. Currently, this bearish impulse has brought the price down to the major horizontal support level at 1.1550, an area which also coincides with a historical buyer zone. The price is now in a consolidation phase, attempting a minor corrective bounce from this support. In my mind, this bounce appears weak and lacks the momentum to signal a true reversal. I expect that this small upward movement will fail to attract significant buying interest and will soon be overcome by the prevailing selling pressure. I think a failure of this bounce will lead to a decisive breakdown below the 1.1550 support level. Therefore, I have placed my TP at 1.1510, targeting a new structural low in what I believe is a continuation of the primary downward trend.