The placement of that trend line is more subjective than most. If you connect it with the March low, you get a very different level than if you draw it from the 2017 low and connect it to the April low.
For the week ahead, the pair may continue to encounter selling pressure at 1.1720. This area has served as a pivot for the last few weeks. Key support comes in near that 2017 trend line at 1.1650.
Judging by the way the single currency reacted to both 1.1720 and 1.1650 last week, there is evidence to suggest some near-term strength. It wouldn’t be surprising given that the pair is down nearly 1,000 pips since just before the April 20 breakdown.
A daily close (New York 5 pm EST) above 1.1720 would expose the next key resistance at 1.1830. Alternatively, a close below the 2017 trend line near 1.1650 would re-establish the downtrend and pave the way for a move to 1.1570.
