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.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
EUR/USD Technical Analysis: Euro May Fall as Major Top Forms

EUR/USD Technical Analysis: Euro May Fall as Major Top Forms

What's on this page


  • Euro looks to have topped near 1.20 against the US Dollar
  • Shallow upswing may yield to a decline below 1.15 figure
  • Long-term chart setup warns of a drop past parity ahead

The Euro completed a bearish Broadening Top chart formation, as expected in our latest quarterly forecast. A clear-cut break of the pattern’s lower boundary doubled as a breach of four-month rising channel as well as a support shelf just below the 1.18 figure.

Prices have since found an interim floor just above the 1.16 mark and staged a modest bounce. The move looks to have hit a wall on a retest of support-turned-resistance however, painting it as corrective and setting the stage for bearish resumption.

A daily close below the swing bottom at 1.1612 looks likely to open the door for a challenge of the 1.1423-96 inflection zone, bringing the single currency to its weakest in more than two months. Alternatively, reclaiming a foothold back above 1.18 would put prices in a now-familiar congestion region, with scope for another probe of the peak at 1.2011 potentially to follow.

EURUSD Price Chart

EUR/USD price chart created with TradingView

The monthly chart suggests that recent weakness might mark the start of a substantial, long-term downturn. The appearance of an emphatic Bearish Engulfing candlestick pattern squarely at resistance marking the 12-year EUR/USD downtrend suggests the next leg in the structural decline may be on the way. If prior rejections at this boundary prove telling, a drop in excess of 20 percent hitting well below parity may be ahead.

EURUSD Price Chart

EUR/USD price chart created with TradingView

EUR Forecast
EUR Forecast
Recommended by Ilya Spivak
Get Your Free EUR Forecast
Get My Guide


--- Written by Ilya Spivak, Head APAC Strategist, DailyFX

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

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