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Having reached a new local 32-month high near 1.2340 mark last week, EUR / USD is declining today for the third trading day in a row.
At the beginning of today's European session, EUR / USD is traded near the level 1.2160, while still remaining in the zone above the key support level of 1.2070 (ЕМА200 on the monthly chart) separating the long-term bearish trend from the bullish one.
Nevertheless, one should not completely ignore the decline in the pair. EUR / USD has broken through the important short-term support level 1.2251 (ЕМА200 on the 1-hour chart) - the first signal for a bullish trend reversal was triggered, so far only technical. However, if the second signal is triggered (breakdown of the support level 1.2144 - EMA200 on the 4-hour chart), one should take seriously the prospect of a reversal of the EUR / USD bullish trend.
A breakdown of the support level 1.2144 will be a signal for the resumption of sales of the EUR / USD pair with targets at support levels 1.1810 (ЕМА144 on the daily chart), 1.1780 (Fibonacci level 38.2%), 1.1700 (ЕМА200 on the daily chart), above which long-term positive dynamics of the EUR / USD remain. A breakdown of the support levels 1.1500 (ЕМА200 on the weekly chart), 1.1285 (Fibonacci level 23.6% of the upward correction in the wave of the pair's decline from 1.3870, which began in May 2014) will finally return EUR / USD into a long-term downtrend.
In the main scenario, you should buy EUR / USD from the current levels and above the support level 1.2144 with targets at 1.2340, 1.2500, 1.2580 (the upper border of the channel on the weekly chart and the Fibonacci level of 61.8%), 1.2600.
Support Levels: 1.2144, 1.2070, 1.2010, 1.1960, 1.1810, 1.1780, 1.1700, 1.1600, 1.1500, 1.1285
Resistance Levels: 1.2180, 1.2251, 1.2270, 1.2340, 1.2555, 1.2580, 1.2600
Trading Recommendations
Sell Stop 1.2135. Stop-Loss 1.2210. Take-Profit 1.2070, 1.2010, 1.1960, 1.1810, 1.1780, 1.1700, 1.1600, 1.1500, 1.1285
Buy Stop 1.2210. Stop-Loss 1.2135. Take-Profit 1.2251, 1.2270, 1.2340, 1.2555, 1.2580, 1.2600
