EURUSD is at 1.0720 which after breaking out from the support has to retest the support turn resistance. This resistance level at 1.0800. At this resistance level, we need to wait for a bearish engulfing forming from where we can take another impulse entry towards the impulse support level.

The ascending trendline has broken out for sells. Market has validated the sells by the candles opening and closing below the trendline. 

The retracement level is invalid at this point of setup.

EMA 50 has broken out for sells and the market has the potential to tap the resistance where market can form a confluence at resistance and can form a retest. 

RSI at 28. We want to see the market neutralize at the 50 level from where we can see the resistance level form a confluence. 

EURUSD breakout and retest

Feb 06 2023