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
EUR/USD Technical Analysis: Euro Makes Good on Bearish Setup

EUR/USD Technical Analysis: Euro Makes Good on Bearish Setup

Ilya Spivak,

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/USD Technical Strategy: Flat
  • Euro Turns Lower as Expected After Forming Bearish Candle Setup
  • Opting Against Initiating Short Position on Risk/Reward Grounds

The Euro moved lower against the US Dollar as expected after prices produced a bearish Dark Cloud Cover candlestick pattern. The pair has now produced the largest two-day decline in a month.

From here, the next layer of support comes in at 1.1146, the 50% Fibonacci expansion. A daily close below this barrier exposes the next downside threshold at 1.1072, the 61.8% level. Alternatively, a rebound back above the 38.2% Fib at 1.1220 opens the door for a test of the 23.6% expansion at 1.1311.

An actionable trading opportunity remains absent for now. The available trade range is 74 pips, which suggests prices are wedged too closely between near-term support and resistance to justify taking a position from a risk/reward perspective given an ATR reading of 121 pips. We will remain for now, waiting for a more compelling short trade setup to emerge.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

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