All eyes were on the European Central Bank (ECB) press conference yesterday as EURUSD traded around significant technical support. After there were no changes announced the currency pair initially surged higher.

However, after a disappointing Eurozone consumer confidence report shortly after and a few ECB members opposing the bank’s new guidance, EURUSD fell back and attempted to break through key technical support.

Source: Admirals MetaTrader 5, EURUSD, Weekly – Data range: from Nov 19, 2017, to Jul 22, 2021, performed on Jul 22, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.

When we look at the long-term, weekly chart of EURUSD shown above it’s clear to see the descending resistance and ascending support levels (thick black lines) that form a technical wedge formation, otherwise known as a symmetrical triangle chart pattern.

After a brief bounce off this level during the ECB meeting, sellers took control and sent the currency pair back down. If the price can break through this technical support then traders will be eyeing the next major horizontal support level (thin black line) around 1.1630.

That would mean a potential 150 pip drop lower.

Did you know that you can use the Trading Central Technical Ideas Lookup indicator to find actionable trading ideas on thousands of different markets?

Start your free download by clicking on the banner below:

INFORMATION ABOUT ANALYTICAL MATERIALS:

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:

1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
4. The Analysis is prepared by an independent analyst, Jitan Solanki (analyst), (hereinafter “Author”) based on their personal estimations.
5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.