EURUSD is breaking a long-term downtrend line
A previous Year marked a great battle for a EURUSD downside extension and a break below the long-term downtrend line 1.0600. A break below this level didn’t happen and the pair is staying in the long-term uptrend from 1973 as you can see from the quarterly chart below. Also, it is visible that the pair is breaking above the rectangle resistance and a falling trend line 1.2000 which will now be a support for the next year and beyond.
Near-term we have consolidation and a retest of the previously broken 1.2200. A confirmed continuation above this level and bounce off it will give us a higher probability of the long trade entries. A rejection here and a break below 1.2180 is required for the downside reversal. The overall medium-term is uptrend but we need to see a confirmed continuation above 1.2200. A sustained break above 1.2280 is required for an upside extension higher.
Note – We are waiting for a trade setupÂ
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