Today we would take a detailed look at the EUR/USD currency pair. Judging by its typical movement during the first halves of the previous years, we can say that the level of 0.9450 is an important mark to keep an eye on every time we see bearish movement. Generally, the pair is moving within a consolidation channel between 1.0500-1.1260. If it escapes below it, then 0.9450 becomes our key target in monthly terms.
At the beginning of this year we saw a head and shoulders pattern replace the then-ruling bearish trend. This again was around the aforementioned level of 1.0500. At that moment investors and analysts were even talking about the euro and dollar achieving parity before the year is through; however, since then the EUR/USD picked itself up and started rising. We should now watch out for the levels at 1.1400 and 1.1520 which might make the pair rebound back down. If we see the pair moving between these two levels, we can open sell positions and prepare for further price drops, which are likely. Such deals should be set up with a stop-loss at 1.1550 or higher, and T/P levels at the supports of 1.1100 and 1.1020 below it.
As of the publication of this article the EUR/USD is trading around 1.1250 and the technical indicators agree in recommending a sell course of action.
