Current rate – 1.08469
Monday’s session start a bit quietly for the EU, as we can see on the chart the EU is drawing a retrace period. The EMA200 (based on low) is performing the job for a support for the EU, the retrace period as we can see above is between the three lines.
If the EU breaks the support which is located around 1.08522 next movement that we can expect is to drop down to the previous low point, again we can located it on the chart as well. Keeping in mind that the consolidation period is between three level’s. Without saying that, the other scenario is seemingly logical.
If the EU break the red line which is EMA200(based on high), we can treat that as a potential signal for upcoming bullish trend till the high point that we can see it again on the chart as well, same scenario.. between three level’s till the next high.