It looks like EURUSD is showing some signs of exhaustion. It has been on the rise consistently since it formed a base at around 1.1600. After the support level was hit, the price went up to 1.1950 before slowing down the momentum.
After this close to 400 pips rise, we saw price going lower to 1.1850, where it currently resides.
Two possible scenarios are possible now since the price seems to be getting locked in a range.
Scenario 1:
Price going lower to the level of 1.1800, where stands the closest support level. If the price starts showing some signs of hesitation like a bearish rejection price action pattern or a bullish confirmation pattern, this will give market participants green light to go long. A possible level to target will be 1.1900 initially and then potentially 1.2000.
Scenario 2:
Price continues its fall to 1.1800. and breaks below this level, then there is a chance it continues its fall towards 1.1700 initially and then perhaps even lower towards 1.1600 again. It is important to monitor the price action around the 1.1800 level and then if the price drops below it and exhibits a bullish rejection of that level, this could lead to a lot of sellers joining the sellout.
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