EUR/USD Technical Highlights:
EUR/USD value sequence suggests new lows pretty quicklyFrench election gap-fill and 19-yr trend-line lie under
EUR/USD value sequence suggests new lows pretty quickly
On this low volatility atmosphere, the Euro continues to have the identical previous look it’s had for effectively over a 12 months, that’s bumping its method decrease, by no means actually garnering any important quantities of momentum. This will very effectively proceed to be the case, at the very least for a short time longer.
The latest rise didn’t fairly make it to the 200-day, September 2018 trend-line earlier than faltering. The Tuesday break of the trend-line off the October low, together with a breach of 11067 tilts the sector again in favor of these in search of decrease costs forward.
It received’t seemingly be a momentum-driven transfer decrease, one reasonably that type of ‘bumps alongside’, however nonetheless the trail of least resistance for now’s clear. It was by no means actually doubtful, however the timing of the subsequent wave of promoting was but to be decided till this week’s help break.
If we’re to see the acquainted sequence of recent cycle lows develop, within the subsequent few weeks we must always see final month’s low at 10879 examined and damaged. That is seen as lastly bringing the long-awaited gap-fill from the French election in April of 2017. To prime of the hole was examined in October, however the precise fill received’t occur till EUR/USD trades right down to 10724.
Additionally, proper in that neighborhood is a trend-line rising up from 2000, passing below the 2016 low. The confluence of the gap-fill and trend-line are prone to create a really robust degree of help which will put in a bigger cycle low. We’ll see how the Euro reacts down there ought to it get there quickly.
It’ll take a variety of work to negate a bearish view with the chart so firmly pointed decrease. A break above the latest excessive at 11179, 200-day, and the September trend-line, all in confluence, might be wanted for starters. For now, working with a bearish bias till it stops working.
EUR/USD Day by day Chart (broke upward development, help, new lows look subsequent)
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EUR/USD Weekly Chart (French election gap-fill, 2000 trend-line)
EUR/USD Charts by TradingView
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—Written by Paul Robinson, Market Analyst
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