This is a very, very dangerous zone. It was expected that price would find some difficulty finding direction at this level. There are two major angles along with a Fibonacci zone in the Square of 90 as well as a major harmonic price level. What is dangerous is the fact that price closed below the angles that would provide a supportive bias in the week ahead. Instead, we closed below, which is very dangerous.
Gann had a rule: The Rule of Angles. It’s a very simple rule that states, ‘if price breaks an angle, it will move to test the next.’ That next angle below is the 1.08 value area. We are at the beginning of a brand new Square of 90. The EURUSD Square of 90 resets every 5.52 years and the end and beginning of a new Square of 90 happens on the 15th of June. Ignoring any other kind of lagging indicator, this type of time cylce (beginning and end of a Square of 90) is one of the most powerful changes in trends we can observe. This time cycle (like all time cycles) acts as a resistance in time to the trend in force. And that trend in force is still to the upside.
The 50% retracement level from the last major swing low to the major swing high resides right on top if the inner harmonic price level of 1.1406. This is the most probable initial zone to reach for the EURUSD. If we do not get responsive selling down then we can expect a nice bounce to the 1.2060 level before further downside movement.