We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
More View more

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Central bank independence has several advantages. Find out what they are in detail with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/cQQmuH8biQ
  • The US Dollar remains in consolidation mode against the Philippine Peso and Indian Rupee. Will the Singapore Dollar weaken as $USDSGD rising support holds ahead? Find out from @ddubrovskyFX here: https://t.co/HZ8Loqj3Ey https://t.co/6PCFkdj3ka
  • Follow @DailyFXedu for your regular #webinar updates with @DailyFX analysts and catch up on the webinars you missed. https://t.co/Da10QUg9r1
  • Greed has proven to be a hindrance more than assistance for traders. How does greed lead to #FOMOintrading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/Le8Qx6OOwV
  • $GBPUSD at the moment break-even straddles = 152pips meaning that for option traders to realize gains, the spot price must see a move greater than 152pips. Get your market update from @JMcQueenFX here: https://t.co/odj2lLRrGf https://t.co/RXCBwHGluG
  • $EURGBP has fallen over 6% since August and is now rapidly approaching a critical support level not reached since May. Will a break below accelerate the aggressive selloff? Find out from @ZabelinDimitri here: https://t.co/CBM8Fg7vM0 https://t.co/0yDnEpzQqR
  • The #Euro is struggling for direction against the US Dollar but the near-term downtrend guiding it lower since late June remains firmly intact. Where is $EURUSD heading? Get your technical analysis from @IlyaSpivak here: https://t.co/us6AINmuoe https://t.co/J4hQtyprYf
  • $DXY & $SPX500 hold steady after #FED rate cut. Get your update from @JohnKicklighter here: https://t.co/vqXlKCMDYA
  • Dow Jones & Dax 30 levels to watch ahead of the fed from @PeterHanksFX here: https://t.co/iUIrsygKz2
  • The politics of the US and UK may be starkly divided but their grip on the vast, $6.6 trillion global foreign exchange trade seems as tight as ever. Get your market update from @DavidCottleFX here:https://t.co/xTKHOvrIqg https://t.co/vtHhdnF82Q
EUR/USD Weekly Technical Analysis: More Euro Selling Ahead

EUR/USD Weekly Technical Analysis: More Euro Selling Ahead

2017-10-27 22:41:00
Paul Robinson, Currency Strategist

What’s inside:

  • EUR/USD completes ‘head-and-shoulders’ top, closes week below the ‘neckline’
  • Now that the pattern has been validated, further losses expected
  • Support levels to watch along the way, but ‘measured move target’ points to 11240 end-target

For a longer-term outlook on EUR/USD, check out the DailyFX Q4 Forecast.

Finally, the developing ‘head-and-shoulders’ pattern we’ve been watching was validated on Thursday when a dovish ECB spurred enough selling to push EUR/USD through ‘neckline’ support. Up until that point the euro was only sporting ‘pattern potential’. With the path of least resistance looking lower, we’re now turning our focus to levels along the way and where, if the H&S is to be invalidated, we should back away from a bearish bias.

For starters, we may very well see a bounce and retest of the neckline around the 11670-threshold. Retesting the ‘neckline’ is a fairly common occurrence and can offer traders a spot to establish (or add to) short positions. We may even see a stronger bounce develop back above resistance, but is likely to prove short-lived if the topping formation is to exert downward pressure. At this time, it will require a move above the trend-line running down off the September high and overtaking of Thursday’s sharp sell-off to bring pause to last week’s break.

Looking lower, there is support not far below at the lower parallel tied to the trend-line off the September high. After this minor level of support, nothing meaningful arrives until 11429, 11366, 11298, and the 200-day MA (currently 11243, but rising). The ‘measured move target’(MMT) clocks in at ~11240. The ‘MMT’ is calculated by simply subtracting the height of the pattern (head to neckline) from the neckline. It’s a symmetry-based target.

EUR/USD: Daily

EUR/USD Weekly Technical Analysis: More Euro Selling Ahead


EUR/USD Weekly Technical Analysis: More Euro Selling Ahead

Check out this guide for ideas on how to 'Build Confidence in Trading'.

On the flip-side, the euro drove the US Dollar Index (DXY) above its respective neckline of a mirror image pattern – inverse ‘head-and-shoulders’. The projected target lies at ~97.25. Generally, we are seeing weakness out of the major currencies versus the dollar, making this not just a euro story, but a generally strong dollar story.

US Dollar Index (DXY): Daily

EUR/USD Weekly Technical Analysis: More Euro Selling Ahead


EUR/USD Weekly Technical Analysis: More Euro Selling Ahead

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email bysigning up here.

You can follow Paul on Twitter at@PaulRobinonFX.

provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.