Forex Technical Analysis: Trend potential – Wait for a pull back to 1.2216-1.2192 to sell EUR

EURUSD – Up

Wait for a pull back to 1.2216-1.2192 to sell EUR

Technical observation

After breaking down the support zone 1.2216-1.2192, EUR raced down and is currently showing signs of correcting to the zone, instead of penetrating to the upper side, I expect a possible clear rebound from this zone for price momentum the lower side. Although this bearish rally is much anticipated, second retracement to the zone will be the best place to short this pair towards 1.1931.In case price goes below the support line 1.1931, I expect a steady decline in price towards the lower support line 1.1727.As long as price is contained below 1.2216-1.2192,only short positions can be advised.

Technical levels

Resistance levels

R1.1.2345

R2.1.2401

R3.1.2505

Pivot: 1.2303

Support levels

S1.1.2241

S2.1.2194

S3.1.209

Trade signal

Wait for a pull back to 1.2216-1.2192 to short EUR on the second retracement with your take profit at 1.1931 and stop loss around 1.2289.

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