Market Condition: Trend Continuation
Target 1: 1x Bar Extension to 1.0697
Target 2: 2x Bar Extension to 1.0498
Invalidation: Continued Consolidation
EURUSD 1Day Chart
(Created using Marketscope2.0 Charts)
Last week, the EUR/USD concluded trading inside of the high and low established by the October 28th daily candle. (SEE The Graph HERE) As of Wednesday’s trading, the pair had broken out of this inside bar trading pattern, which was supported at 1.0896. From this point, the pair has continued to move toward lower lows, and has declined as much as 188 pips during today’s Non-Farm Payroll event. As prices approach a 1x extension of the previously mentioned inside bar, continuation traders may again look for another price extension for the EUR/USD at 1.0498.
In the event that the market fails to continue its trend lower, traders should begin to monitor values of resistance for possible reversals. If price action moves back above 1.0896 (old support, new resistance) it would at least temporarily invalidate the current move lower.
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