The most popular currency pair started the day of declines that led EURUSD to the 1.1177 area. Yesterday’s minimum level is currently being tested from the bottom. The level of yesterday’s bottom at 1.1189 was broken by the bears before noon. The pair did not drift too far from the broken support setting a local minimum at area 1.1177.
What we observe now on the chart is a classic broken support test. If bears will maintain an advantage – EURUSD in the coming trading hours is likely to decline further. This scenario is supported by the fact that on the hourly chart EURUSD can be drawn somewhat stretched triangle formation which began to build on Tuesday.
Declines area in the case of the bear scenario reaches the selected green zone around 1.1135. This zone forms a support for a much larger triangle formation built on the daily chart of EURUSD.
If the bulls supported by scheduled for this afternoon macroeconomic data manage to push the EURUSD back to the centre of the triangle on H1, then the probability of bullish impetus and testing of top @1.1238 is growing.
