EUR/USD TECHNICAL STRATEGY: BEARISH
Bearish Darkish Cloud Cowl candle sample hints at Euro losses forward
Affirmation sought on a break of neckline help on Four-hour chart
Invalidating bearish bias would start with a detailed above 1.15 determine
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The Euro put in a bearish Darkish Cloud Cowl candlestick sample on a take a look at of resistance guiding the forex decrease towards the US Greenback for over a yr. The setup hints corrective good points have run their course and dominant downtrend resumption is brewing forward.
The primary layer of noteworthy help strains up at 1.1290, the January 24 low. A every day shut beneath that exposes the November 9 backside at 1.1216. Alternatively, a every day shut above pattern resistance – now at 1.1501 – targets the 1.1543-54 congestion space, adopted by the October 16 excessive at 1.1622.
Turning to the four-chart for extra actionable path cues, neckline help guiding the previous week of worth motion is available in focus. A break beneath that in addition to the 1.1418-26 congestion area often is the affirmation that sellers are searching for to sign the chance of draw back follow-through.
Sizing up potential catalysts for the downturn, a comparatively quiet providing of Euro-specific occasion threat is more likely to put the onus on the USD facet of the equation. On that entrance, deepening threat aversion might assist validate technical cues because the Dollar finds help in haven-seeking capital flows.
EUR/USD TRADING RESOURCES
— Written by Ilya Spivak, Forex Strategist for DailyFX.com
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