March 11 low at 1.1221 is tested.
The EURUSD is testing the next target low as its trend back lower continues. The pair is working on its 5th lower day in 6 after peaking at 1.14476 on March 20th. The pair is also trying to dip below a lower trend line connecting the lows from yesterday.
At the high today, the pair did hold below a topside trend line (see red numbered circles). That trend line is a risk level for shorts looking for more downside now. Stay below keeps the bears in control. That is what happened on the the test earlier today. Bearish.
Seller against that level are the winners today and if looking for more downside momentum, are looking for the break of the 1.1221 to keep the run going. They also may be the traders who are leaning against the old low with stops on a break lower. It makes sense to take profit too (that is why support targets hold). You can always resell on a break below the line.
It matters to get good trade location when given the opportunity.
