After breaking down from its recent horizontal channel, EURUSD has arrived at a new yearly low at 1.0350 level. Therefore, this makes the downtrend still very valid and we will continue to look for sell positions after a retracement.
From the yearly low, we can see the price formed a bearish flag channel. The price recently has broken the neckline of the double bottom pattern within the bearish flag channel. This could indicate the beginning of a price retracement. Therefore, our first area of interest to enter sell positions is at the previous support area of the horizontal channel, which is the 1.0480 level. From that level, we will watch for a consolidation/reversal pattern and then enter to target the yearly low of 1.0350
From the yearly low, we can see the price formed a bearish flag channel. The price recently has broken the neckline of the double bottom pattern within the bearish flag channel. This could indicate the beginning of a price retracement. Therefore, our first area of interest to enter sell positions is at the previous support area of the horizontal channel, which is the 1.0480 level. From that level, we will watch for a consolidation/reversal pattern and then enter to target the yearly low of 1.0350
