EUR/USD Technical Technique: BEARISH
Tepid Euro rebound stalls at acquainted resistance from January 2018
Close to-term positioning hints bearish reversal could also be brewing forward
Sellers might search breakout affirmation earlier than committing in earnest
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The Euro is retesting resistance defining the downtrend towards the US Greenback since January 2018 as soon as once more. This barrier is now bolstered by rising counter-trend assist guiding the upswing from mid-November lows, now appearing as resistance after being damaged final week.
The looks of a Capturing Star candlestick at this barrier speaks to indecision and should precede a reversal downward. Sellers could also be emboldened in the event that they handle to increase any on-coming decline into an in depth beneath the vary ground within the 1.1216-34 space, opening the door for longer-lasting bearish follow-through.
Zooming in to the timelier four-hour chart appears to strengthen the sense selloff is on the horizon. Costs have produced a Bearish Engulfing candlestick sample coupled with unfavorable RSI divergence, hinting the week-long EUR/USD restoration might now run its course.
Importantly, the collection of upper lows establishing rapid assist stays unbroken. Merchants seeking to take up the brief aspect may anticipate affirmation on a breach beneath this threshold to commit in earnest, particularly since promoting immediately into assist is likely to be judged as unattractive on danger/reward grounds.
EUR/USD TRADING RESOURCES
— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
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