EURUSD Could Slide Below Critical Level

The EURUSD pair is resting just above last week’s low, and the May low of 1.1105. A break to the May low might send the exchange rate to the support level and likewise May 7, 2017, high of 1.1015. If the price indeed slides below the May low, I suspect trades will remain bearish below this week’s high of 1.1153 for a risk-reward ratio of 1.8 if the price reached the 1.1015 level. Alternatively, they will remain bearish below the ECB rate meeting high at 1.1187 for a 1:1 RRR. The EURUSD pair has been plagued by false breakdowns in the last 13 months, but with the GBPUSD in free fall, and the ECB turning dovish the EURUSD might finally be ready to trader lower. A break to the May low might also trigger a major descending triangle pattern with a target of 1.0785. Thus the next few days will be crucial for the EURUSD. If the price does not trade below the May low, the price might try to reach the ECB rate meeting high around the 1.12 level.Don’t miss a beat! Follow us on Twitter.

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