EUR/USD TECHNICAL ANALYSIS: BEARISH
Euro tumbles again under 1.12, invalidating late-2019 upside breakCapturing Star candlestick at longer-term resistance would possibly mark primeAffirmation of broader bearish pattern resumption continues to be pending
Really helpful by Ilya Spivak
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The Euro has retreated under the 1.12 determine towards the US Greenback, seemingly paining the late-2019 breach of vary resistance set from mid-October as a false breakout. Help within the 1.1069-1.1104 congestion space is now in focus. Breaking under it on a each day closing foundation would double as invalidation of the uptrend carved out since mid-November, suggesting the long-term descent could also be again in play.
Every day EUR/USD chart created with TradingView
Certainly, zooming out to the weekly chart reveals a telltale Spinning Prime candlestick shaped on a check of 1.1183, the intersection of October’s swing prime and the outer layer of the resistance guiding EUR/USD decrease since mid-2018. This coupled with early indicators of destructive RSI divergence speaks to ebbing upside momentum which may precede bearish reversal.
Weekly EUR/USD chart created with TradingView
Affirmation continues to be wanted for an actionable commerce setup nonetheless. A transfer downward that invalidates the sequence of upper lows began in late September – now represented by a detailed under rising pattern line assist at 1.1060 – might be essential to that finish. Such a reversal would initially set the stage for a check under the 1.09 determine. Alternatively, a breakout larger targets June’s excessive at 1.1412 at first.
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— Written by Ilya Spivak, Forex Strategist for DailyFX.com
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