We've been watching the #EURUSD very closely lately and what we have observed is that the chart came into contact with massive supply created by the institutions. Once this supply came into contact price started to drop. As price was dropping the #Institutions, which are the major banks that control price, created a downtrend on the daily chart. We watched and as they formed this trend and we drew in our trend lines accordingly using the concepts we teach at the school.
Since then price made contact with a demand area on the daily chart that played a significant role when price was rallying upwards late last year. We have since seen a rally form from this demand and make contact with some supply we have mapped out. As this supply on the daily chart was being contacted our descending trend line now became broken.
The broken trend line is BIG news because now this opens the possibility of price heading higher. If the daily supply at 1.2156 is broken through then that opens the path for a move higher. If this supply holds then we expect more downside to take place.