Skip to Content
News & Analysis at your fingertips.

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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Euro Holds Monthly Support But Deeper Losses Likely Ahead

Euro Holds Monthly Support But Deeper Losses Likely Ahead

Ilya Spivak,
What's on this page


  • Euro finished August narrowly avoiding monthly support break
  • Shorter-term chart setup argues for renewed downside pressure
  • Added further to short EUR/USD trade initiated near 1.24 mark

See our free guide to get help gain confidence in your British Pound trading strategy !

The Euro narrowly avoided a break below monthly support near the 1.15 figure. Still, the decade-long down trend against the US Dollar remains very much intact as September gets underway. What’s more, nearer-term positioning suggests it may be just a matter of time before a breach opens the door for deeper losses.

Euro vs US Dollar Chart - Monthly

The daily chart shows prices recoiling from resistance capping the upside since early June, paving the way for another challenge of support in the 1.1530-54 area. A daily close below that puts the August swing low back in the crosshairs.

Euro vs US Dollar Chart - Daily

Zooming in to the four-hour chart offers further confirmation and a greater sense of urgency as prices pierce below counter-trend support guiding the upswing from August lows and breach a secondary barrier marked by former resistance. That seems to set the stage for another challenge of the 1.15 threshold.

Euro vs US Dollar Chart - 4-hour

With this in mind, additional short EUR/USD exposure was added to the trade initially triggered at 1.2407 and subsequently scaled up near 1.19. The overall cost basis is now at 1.2153. A stop-loss will be activated on a discretionary basis.

--- Written by Ilya Spivak, Sr. Currency Strategist for

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter


Other Weekly Technical Forecasts:

AUD/USD Downtrend Resumes, Eyes Mid-2016 Lows as Momentum Fades

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