EUR/USD Breaks Lower Under Support
- The EUR/USD has broken lower in early trading
- Daily S4 is identified at a price of 1.0984
- Bullish EUR/USD reversals begin at 1.0998
EURUSD 30minute Chart
(Created using TradingView Charts)
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The EUR/USD has broken lower this morning on broad US Dollar strength. The currency pair has already delcined as much as 61 pips and is currently trading below today’s S4 Camarilla pivot point which is found at a price of 1.0984. The breakout occurring this morning is just the first bearish breakout for the EUR/USD since the Feds FOMC rate decision last week. If this bearish momentum continues, and prices continue to trade lower on the day, traders may see this morning’s price action as an attempt for the pair to return back towards its prevailing downtrend. It should be noted that today’s trading range measures 29 pips. This means breakout traders, looking for a 1x extension of the range, may look for initial targets for the pair at a price of 1.0955.
If prices begin to reverse based on the daily low found at 1.0968, today’s bearish breakout would be invalidated if prices move back inside of the trading range denoted below. Range support can be found at the S3 Camarilla pivot point at a price of 1.0998. A reversal of price through this value opens the EUR/USD up to further advances in price towards values of resistance. This would include the R3 pivot found at 1.1027. In this alternative bullish reversal scenario, the current bearish breakout environment would be considered concluded. At this point traders can opt to change positioning based on new market conditions.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.