EUR/USD Technical Technique: Flat
Euro breaks 2-week help, hinting at downtrend resumption
Proximity to key barrier close to 1.13 warns towards quick place
Higher threat/reward on break or bounce looked for commerce setup
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The Euro could also be resuming the near-term down pattern towards the US Greenback. A decrease low within the development began from the height in late September appears to have been established and confirmed following a break beneath counter-trend line help set from the November 12 swing backside.
Whereas the reversal is encouragingly in keeping with the long-term worth pattern, the day by day chart warns that it might be untimely to interpret it as an actionable set off to enter quick. Costs sit in nearer proximity to help at 1.1301 than instant resistance – the place the outer layer appears to be like to be at 1.1481 – making it unattractive to promote from a threat/reward perspective.
With this in thoughts, choosing the sidelines appears most prudent till a better-looking commerce setup presents itself. That will come on a break by 1.1301 or a rebound that brings costs nearer to resistance with out invalidating the general bearish bias. If and the way the latter situation is realized in apply must be noticed over time, with buying and selling choices to comply with therefrom.
EUR/USD TRADING RESOURCES
— Written by Ilya Spivak, Forex Strategist for DailyFX.com
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