EUR/USD TECHNICAL ANALYSIS: BEARISH
Euro rejected at chart resistance, eyeing a transfer to check October lowNovember high break wanted to neutralize near-term promoting stressLonger-term place hints transfer probing beneath 1.07 could also be afoot
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The Euro recoiled from resistance within the 1.1069-80 worth inflection space, pushing costs again towards month-to-month lows close to assist within the 1.0968-90 zone. A day by day shut beneath that’s more likely to set the stage for a take a look at of the October 1 swing backside at 1.0879.
Alternatively, a snapback upward that secures a foothold above 1.1080 – in opposition to on a closing foundation – would most likely open the door to problem the 1.1176-83 may high anew. Comply with-through larger past that may neutralize near-term promoting stress and set the stage for a longer-lasting restoration.
In the meanwhile nonetheless, broader positioning nonetheless appears to telegraph a bearish bias. The pair’s breach beneath rising counter-trend assist at first of November appeared to recommend correction had run its course and the previous downward trajectory was ready to be reasserted.
Each day EUR/USD chart created with TradingView
Zooming out to the weekly chart, current worth motion seems to place EUR/USD properly inside the downtrend carved out since mid-2018. If prior patterns are indicative, development averages recommend the newest rejection at resistance portends a downswing on the order of four.5 %. That will put the pair beneath 1.07.
Weekly EUR/USD chart created with TradingView
EUR/USD TRADING RESOURCES
— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
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