EUR/USD may crash if it breaks this critical level !
Hello,
After a weak start of the third quarter, the EUR/USD is recovering slightly from YTD lows after a very bad reading from the manufacturing sector in the US, showing the lowest number in 10 years and probably pointing to a recession in that industry.
Let's talk technicals a little bit and specifically about the critical support level for this pair: 1.0870
This is not a random number that supported the bulls yesterday, it is a very important level for it is the 23.6% Fibo retracement of the 2016-2017 uptrend. It is also the bottom of a recent down channel.. Therefore, if the bears were strong enough to break this level, EUR/USD may free fall towards lower levels.
The current weekly candle tried breaking the lower bound of the falling wedge around the 1.0870 level, but re-entered it quickly.
I will add 2 other charts in the next post (daily+4hr) in order to keep the charts as clear as possible.
After a weak start of the third quarter, the EUR/USD is recovering slightly from YTD lows after a very bad reading from the manufacturing sector in the US, showing the lowest number in 10 years and probably pointing to a recession in that industry.
Let's talk technicals a little bit and specifically about the critical support level for this pair: 1.0870
This is not a random number that supported the bulls yesterday, it is a very important level for it is the 23.6% Fibo retracement of the 2016-2017 uptrend. It is also the bottom of a recent down channel.. Therefore, if the bears were strong enough to break this level, EUR/USD may free fall towards lower levels.
The current weekly candle tried breaking the lower bound of the falling wedge around the 1.0870 level, but re-entered it quickly.
I will add 2 other charts in the next post (daily+4hr) in order to keep the charts as clear as possible.
Ramzi Abou Abdallah, CFTe, CMT
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