EUR/USD TECHNICAL ANALYSIS: BEARISH
Euro difficult Three-month development assist, break might restart downtrend Previous development dynamics indicate drop towards 1.07 if promoting stress prevailsDense near-term resistance presents problem for tried restoration
Really helpful by Ilya Spivak
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The Euro finds itself at a decisive spot, sitting squarely at assist guiding the upswing over the previous three months. A break under it and the 1.1069-1.1104 congestion space would recommend the dominant downtrend has been resumed. The primary layer of assist thereafter traces up within the 1.0968-90 zone, adopted by the October 1 swing low at 1.0879.
EUR/USD each day chart created with TradingView
Which may be only the start nevertheless. Pulling again to the weekly chart gives a way of what would possibly comply with if a break of assist sees the downtrend re-engaged. The dynamics of the decline since mid-2018 indicate a median downswing of Four.6 p.c. Such a transfer would put the one forex simply above the 1.07 determine, amounting to the bottom stage since April 2017.
EUR/USD weekly chart created with TradingView
Zooming in to the four-hour chart reveals costs are retesting support-turned-resistance at 1.1123 having discovered interim assist slightly below the 1.11 determine. Neutralizing speedy promoting stress in earnest appears difficult nevertheless. EUR/USD might want to reclaim a foothold above recently-broken development assist guiding December’s rally in addition to a falling resistance line defining 2020 commerce to date.
EUR/USD Four-hour chart created with TradingView
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— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
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