EUR/USD has been in a falling wedge since the summer of 2018. In December 2019, price tried to breakout to the upside, only to fail to move higher during the last week of 2019. In 2020, price reversed course and began trading lower back inside the wedge. Often, we see that when price fails to break out of one side of the wedge, it tries to retest the other side. EUR/USD has currently taken out prior lows at 1.0879. First support is a gap from 2017, between 1.0775 and 1.0820. Below there is a strong cluster of support between 1.0700 and 1.0750, which includes:
- The 127.2% extension from the September 2019 lows to the December 2019 highs
- The bottom trendline of the falling wedge
- An upward sloping trendline dating back to 2000
More Downside For The Euro?
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