EURUSD Analysis – Strong pullback

Time to update you about the situation on the main pair on the market – EURUSD, which for the last time, was analyzed by our team on the 12^th Dec. Back in that day, we were negative but still waiting for one confirmation – breakout of a major horizontal support:

„That is a positive sign but just in a short-term. It looks like the sellers are determined and they should try the breakout one more time. The proper sell signal, will be triggered, when the price will close a day below the yellow area. As for now, that is just a hypothesis but may become a reality really soon. „

The breakout happened on the 14^th of December and was pretty strong. At the end of the day and actually a week, buyers tried to deny that sell signal but the damage was done and the sell signal was triggered. Monday started with a continuation of that drop but we still can perceive it as a normal price action movement of a price testing the broken support as a closest resistance. In my opinion, as long as we stay below the red line connecting recent lower highs, the sentiment is negative and we should see a further slide.