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EURUSD – Broke the trend line, but still bearish

Razvan Mihai

Analyst

The EURUSD fell more than 500 pips after it hit a resistance at 1.1713. For the moment it found a support at the 78.6 Fibonacci retracement, from which it bounced back above 1.1200. The last swing up managed to break the down trend line. Even though this is a bullish signal, we do not consider it strong enough to believe another strong rally would start.

Without hitting a new higher high, the price dropped back to retest the trend line. A break and close on a 60 minute chart below 1.1195, local support, would signal a continuation of the down move towards 1.1157 or even 1.1100. A bullish swing above the current high could signal another up move.

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