EOS/USD it has decreased today and could come much deeper to test and retest some support levels before will try to jump much higher. It is trading in the red as the Bitcoin has decreased a little and after the rejection from a very strong dynamic resistance. I’ve talked about a buying opportunity in the previous report, so, this scenario is still possible if the rate will make a valid breakout above the near-term resistance levels.

Bitcoin is trading at 6596 level after the today’s important drop. Bitcoin has retested a broken dynamic support and now is pressuring a dynamic support.  A Bitcoin’s further drop will force the EOS to drop as well.

Price has found a temporary resistance at the outside sliding parallel line of the former descending pitchfork and now could drop much deeper to retest the broken inside sliding line (SL1) of the descending pitchfork.

Unfortunately, it has failed to reach the and retest the median line (ml) of the minor black ascending pitchfork which it represents a very strong dynamic resistance.

EOS has shown some oversold signs after the failure to reach and retest the SL and to stabilize below the median line (ML). It has made an aggressive breakout from the down channel between the SL and the SL1 signaling that we may have a further increase.

Price it is still trapped below some very important near-term resistance levels, so only a valid breakout will confirm a broader upside movement.

I’ve drawn a trade setup on the Daily chart, so, we may have a larger upside movement only if the rate will make a valid breakout above the median line (ml) of the minor black ascending pitchfork, above the WL2 and above the upside 50% Fibonacci line of the descending pitchfork.  The Stop Loss should be placed below the lower median line (lml) of the minor black ascending pitchfork.