EUR/USD showing price action off the trendline

22 April 2020
19:59

By

Edward M. Hamman

Senior technical analyst
WadaFox Trending

So today the candlestick broke through the trendline to the downside. Now this is an indication to where the market is leading us.

23 April 2020

09:05

Good morning traders

My coffee is brewing and while we wait, let's get started.

So the image above from yesterday, we saw a break through the trendline to the downside. Like I said, it was an early indication. The image below is how it ended yesterday:

It ended just below the trendline. So let's look at the 4hr chart:

There were some price action against the trendline. The trendline show resistance against the price. Now depending on the news and what other traders are planning to do, we might see this as a further bearish movement. If not, then we might consider the possibility of a false breakout.
Note the 1.07840 support line. It will hold support, but if it breaks through that support line as well, then the bears are still going strong and further downward movement can be anticipated.

We will keep posting regarding this breakout, as it is a good signal for where the market is heading.