For basically an entire year, EurUsd has been retesting a massive previous support which was then turned resistance. Over the past couple of months, we then saw a significant drop breaking all structure towards the downside and it is quite likely that this won't stop soon.
Just after I published this analysis, EurUsd is now creating an expected short term rally after we saw a significant drop of more than 1.000 pips over the past couple of weeks. The overall trend remains valid, bears just need to take a breath before they create the next wave lower.
EurUsd is now starting the expected consolidation phase, digesting the harsh drop which we saw over the past couple of months. Since markets don't move in a straight line, this is totally expected and even some bullish short term pressure would not invalidate the bearish outlook.
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