Dmitriy Chernovolov, Technical Analyst who has been actively following the FX markets for the last 11 years. He uses a systematic trend following approach combined with a proven money management system. Dima prefers to combine multiple technical analysis tools (e.g. Fibonacci retracements, trendlines, indicator divergences, Japanese candlesticks, Elliott Waves as well as horizontal support and resistance levels on different time-frame charts) to identify high probability synergetic trade setups with a high reward/risk ratio.

EUR/USD: sell targets - 1.0900 and 1.0800

By: Dima Chernovolov

  • EUR/USD broke support level 1.1040
  • Next sell targets - 1.0900 and 1.0800

EUR/USD continues to decline after the price earlier broke through the support level 1.1040 (former strong resistance level which reversed waves (A) and B in March and April, as can be seen below). The breakout of this support level should intensify the bearish pressure on EUR/USD in the coming trading sessions. The pair is currently falling inside the 1st minor impulse wave 1, which belongs to the impulse (1) of the primary impulse ③, which started earlier this month – when EUR/USD reversed down sharply from the pivotal resistance level 1.1450.

EUR/USD is likely to fall further toward the next sell targets 1.0900 and 1.0800. Sell stop-loss can be placed above the resistance level 1.1040.

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