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: Ready for Down Trend Resumption?

EUR/USD Technical Analysis: Ready for Down Trend Resumption?

What's on this page

EUR/USD Technical Strategy: SHORT AT 1.2407

  • Euro capped at channel ceiling, menacing counter-trend line
  • Break lower opens the door for a test of support below 1.22
  • Bearish bias invalidation point established above 1.24 mark

See our free guide to learn how you can build confidence in your EUR/USD trading strategy !

The Euro is testing key near-term support against the US Dollar, with a break opening the door for resumption of a two-month down trend. Price action has been defined by a choppy falling channel since a double top was carved out below the 1.26 figure in late January to mid-February.

A daily close below trend line support guiding the latest upswing – now at 1.2288 – clears the way for another challenge of the 38.2% Fibonacci retracement at 1.2173. Alternatively, a push above range resistance at 1.2446 would also breach the channel top and expose the 1.2537-8 area (38.2% Fib retracement, double top).

The second half of a short EUR/USD trade triggered at 1.2407 remains in play after partial profit was booked at the position’s first objective, looking to take advantage of downward trend resumption. A stop-loss will be activated on a daily close above 1.2446. Scale-in opportunities will be evaluated as they appear.


--- Written by Ilya Spivak, Currency Strategist for

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

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

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