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: Topping Below 1.11 Figure?

EUR/USD Technical Analysis: Topping Below 1.11 Figure?

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

Talking Points:

  • EUR/USD Technical Strategy: Flat
  • Outline of H&S Chart Formation Hints Euro May Be Topping vs. US Dollar
  • Absence of Confirmation, Threat of Risk Aversion Argues for Patience on Short

The Euro may be establishing a top against the US Dollar as prices carve out what may turn out to be a bearish Head and Shoulders chart formation. The single currency found resistance below the 1.11 figure having launched a recovery following the ECB rate decision, as expected.

A break below support in the 1.0777-1.0818 area marked by the May 27 low and the 23.6% Fibonacci expansion on a daily closing basis paves the way for a test of the 38.2% level at 1.0602. Alternatively, a reversal above a horizontal pivot at 1.0938 opens the door for a challenge of the December 15 high at 1.1060.

Confirmation of the Head and Shoulders setup requires a daily close below neckline support at 1.0777 and so remains absent for now. Meanwhile, the threat of risk aversion amid Fed policy speculation remains significant and may boost the Euro mid carry trade liquidation. With that in mind, we will remain flat for now.

Losing Money Trading Forex? This Might Be Why.

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