Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

EUR/USD: Pair Could Break Below Key Support

By Axiory (Tomasz Wisniewski)ForexJan 21, 2022 07:29AM ET
www.investing.com/analysis/eurusd-pair-could-break-below-key-support-200615494
EUR/USD: Pair Could Break Below Key Support
By Axiory (Tomasz Wisniewski)   |  Jan 21, 2022 07:29AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Let’s get straight to the point. This problem is the false breakout that happened last week. It gave false hope for a reversal, but now, many fooled buyers have to abandon their long positions, and this may cause havoc on the most popular instrument on the Forex market.

Last week, EUR/USD buyers managed to break two crucial resistances; a horizontal one at the 1.1380 level (yellow) and a dynamic one – blue mid-term down trendline connecting the latest crucial lower highs. That gave us a buy signal, which we now know was fake. This gives us a false breakout pattern (red), which in theory promotes a strong movement in the opposite direction – down.

The price is currently defending the last key support – a dynamic short-term uptrend line, but I can’t guarantee that this one will hold. Chances for that are pretty slim, and the possibility of a breakout is increasing. A breakout of the black line should confirm the dominance of the sellers and bring us a long-term sell signal. The odds for that are pretty significant.

EUR/USD daily price chart.
EUR/USD daily price chart.

EUR/USD: Pair Could Break Below Key Support
 

Related Articles

Kenny Fisher
Is The Yen Making A Comeback? By Kenny Fisher - May 20, 2022 1

After a brutal slide over the past two months, the Japanese yen is showing some bounce in its step.Japanese yen bounces backThe yen registered 10 straight losing weeks but finally...

EUR/USD: Pair Could Break Below Key Support

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email