EUR/USD Trying to Rally From Basing Pattern to 2008 Trend-line
EUR/USD has generally been a choppy mess of price action, but given the rally that came prior to this development, this is a good thing. Since the 2018 peak all rallies have been met with quick turnarounds that led to new cycle lows. But the change in character suggests another rally is brewing.
A breakout above 11422 will have the Euro firmly above the 2018 trend-line and ready to take on the March coronavirus spike-high at 11495. Given the change in character and breaking of the trend-line there appears to be a good chance that level won’t hold as resistance, at least not for long.
A break above there would have a major long-term trend-line in play from the 2008 high, with the line crossing over the 2011, 2014, and 2018 highs. This would be yet another massive test of the long-term downtrend.
For now, we will focus on the likelihood of a boost higher in the short-term, and then worry about what EUR/USD will do in the event it tests the 2008 trend-line. A break below 11168 will be needed to turn the picture back towards the downside.
EUR/USD Daily Chart (basing around 2018 trend-line)
EUR/USD Weekly Chart (2008 trend-line could come into focus)
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.