EUR/USD breaks the long-term trendline support for the second time this year
Friday's daily close saw the pair break the long-term trendline support from April last year once again. The first time that the trendline broke was at the start of this month, but the pair remained supported by the 8 February low of 1.2212.
Near-term momentum is with sellers right now (break below the 100 and 200-hour MAs) and with the break of the trendline support, a test towards the downside looks very much on the cards at this point.
So, what are the key levels to look out for in the event of a move towards the downside?
First up is the 8 February low which stalled the fall earlier this month at 1.2212. Lurking nearby is the 100-day MA (red line) at 1.2206. That region will be a key area of interest for buyers so that will be a real test for sellers to break through.
But arguably the bigger level to look out for is the 18 January low of 1.2165. It is a level that is acting as the floor in the pair's current "range-bound" trading this year. Should that level break, euro buyers are in store for a lot of pain - and expect such a move to be a swift one too.
