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: Trend Line Resistance Held

EUR/USD Technical Analysis: Trend Line Resistance Held

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

Talking Points:

  • EUR/USD Technical Strategy: Pending short at 1.1150
  • Euro recoils from 3-month trend resistance, hints down trend resuming
  • Short entry order established to capture acceptable risk/reward setup

The Euro may be readying to turn lower anew against the US Dollar after prices recoiled from resistance at a falling trend line capping gains since early May. Prices put in a Bearish Engulfing candlestick pattern to mark a would-be top above the 1.12 figure but follow-through has been lacking thus far.

Near-term support is at 1.1067, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis paving the way for a test of the 38.2% level at 1.0965. Alternatively, a reversal above the trend line and the August 2 high at 1.1234 opens the door for a challenge of double top resistance at 1.1393.

A short position seems compelling but prices are a bit too low to justify pulling the trigger from a risk/reward perspective. With that in mind, an entry order to sell the pair at 1.1150 has been established. If triggered, the trade will initially target 1.1067 and carry a stop-loss activated on a daily close above 1.1192.

Has the Euro performed in line with DailyFX analysts’ expectations? Find out here !

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