With EURUSD encountering heavy resistance at 1.3378, it is likely going to hit the downtrend yet again. Consistently failing to break the 1.3378, price will encounter supports at 1.3289 and 1.3184.
These two spots are the only significant obstacles for EURUSD to carry on with the downtrend. Considering the absence of uptrend above 1.3378 since mid-January, price is well likely to drop down to support 3 with short stops at R1 and R2.
With Monday being highly unpredictable, price might continue to test the resistance level at 1.3378 and even slightly break it, as it happened in mid-June, after which the downtrend is still inevitable.
It is obvious how price reacts very well at 1.3378 level. In January this year, this level showed as extremely heavy resistance, while price still managed to break it. A month after, in February, price tested the 1.3378 after a short downtrend and failed to pierce it. June was the month when price failed to break the resistance at 1.3378 for the second time. We are at 1.3378 for the 4th time this year and resistance level is well likely to turn the price back in downtrend.
Guest Post by Nathan Gass by http://ForexMetaTraderIndicators.com
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