EUR/USD Is Ready to Violate The Bearish Butterfly

Today, the EUR/USD continued trading below the suggested entry level of $1.2290, before breaking higher to $1.2325. The Bearish Butterfly pattern on the daily chart has presented us with a good number of opportunities regarding the Euro, however, the pattern is currently quite shaky.  It looks as though the bull power is strong enough to violate this harmonic pattern.

EUR/USD – Daily Timeframe

Currently, the ultimate support level is $1,2275, along with an immediate resistance at $1.2335. A break at either side will determine the trend.

If you are looking to trade this pair, make sure to check out the FX Leaders Jan 24 – Morning Brief, as we discuss many impactful economic events due for the European session.

EUR/USD – Key Trading Levels

Support     Resistance 

1.2249       1.2341

1.219         1.2374

1.2157       1.2433

Key Trading Level:    1.2282

EUR/USD Trade Plan

Investors are advised to seek bullish positions above $1.2285, with initial targets of $1.2345 and 1.2370.  Proceed with caution regarding these economic events, as they may change the Euro trend. I wouldn’t suggest taking any long-term positions in Euro before the release of the ECB Monetary policy tomorrow.