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The EUR/USD pair has broken down during the trading session on Thursday, slicing through the 1.2350 level. By doing so, it looks as if we will go looking towards supportive levels underneath, and I think I know where we may find buyers jumping and based upon value and structural support. The most important support level underneath is going to be the uptrend line, which extends on the daily chart and it shows that we are still in an uptrend overall. I also believe that there could be support at the 1.23 level underneath, so I would look for a supportive bounce in that area, or of course the uptrend line.
If we did breakdown below the uptrend line, then I think the market will unwind towards the 1.21 handle, an area that has been massive in its importance previously, and I think that we will be hard-pressed to reach down to that level. I believe that longer-term, we will continue to reach towards the 1.25 level above, which is massive resistance. When looking at the longer-term charts, there is a bullish flag that has been broken to the upside, and the move measures towards the 1.32 level, which has a bit of structural integrity to it as well on the longer-term charts. I believe that eventually the buyers come back in, and this should present itself as a nice value opportunity for those who are careful and willing to add to a position slowly.
EURUSD analysis Video 13.04.18
This article was originally posted on FX Empire