06.02.202008:39 Forex Analysis & Reviews: EUR/USD is preparing for the breakdown; Senate acquitted Trump

Good afternoon, dear traders! I present to your attention an analysis of the EUR/USD pair.

So, according to our yesterday's recommendation to sell the pair - the instrument ended the day with a good decline, stopping at two levels which were important for the buyers. Let's look at them:

The first level is a two-week low (as well as the minimum of January) and is at a price of 1.099. The second one is more serious which is the low of November last year at a price of 1.098. At the same time, stop orders of buyers of large periods are beyond these levels. The triggering of their stops will lead to a collapse of the price in the zone of these levels, causing the so-called "slippage".

Yesterday, the US currency strengthened on all fronts and the SnP500 wide market index amid news that the Senate acquitted Trump in the impeachment case. Against this background, I recommend developing towards strengthening the American currency. For EUR/USD pair, this will be expressed in a depreciation of the currency pair and with a high probability, it will lead to a breakdown of the levels of 1.099 and 1.098. After breakdowns, I recommend closing short positions and taking profits.

Have a successful trading and control the risks!