EUR Index chart looks ugly

Written by: John Adam
March 5, 2020

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This is now a very ugly chart. The bullish break of trend has now been broken to the downside, so a nice clean rally higher is out of the window. That does not mean we can’t see upside, it merely means that support and resistance levels are less trustworthy than previously until we see a return to higher volatility and liquidity. We could see a bounce from the top of the bearish channel at EURUSD 1.3585 but this is not a high probability entry point given how strongly we have pushed away from the range highs dictated by the ECB rate cut volatility. This does bring into question a very interesting point though. The major trend line support shown in thick blue was never tested so we could easily see a trickle back down and by the time we get there, the ECB range would have aligned with this support which makes for a very strong support confluence and perhaps we could see a longer term rally from this point. I am bearish EUR% in the short term
**EUR% Index Resistance: EURUSD 1.3617, 1.3650, 1.3700**
**EUR% Index Support: EURUSD 1.3593, 1.3585**
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