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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
EUR/USD Technical Analysis: Ten-Year Down Trend Back in Play

EUR/USD Technical Analysis: Ten-Year Down Trend Back in Play

Ilya Spivak, Head Strategist, APAC

EUR/USD Technical Strategy: SHORT AT 1.2407

  • Euro recoils from 10-year resistance, breaks counter-trend support
  • Breach below immediate support opens the door to test below 1.18
  • Looking for improved risk/reward settings to add to short position

See our quarterly Euro trading guide to learn what will drive prices through mid-year!

The Euro looks to have marked a major downside reversal, ending a short-term uptrend and resuming a decade-long decline against the US Dollar. Prices recoiled from long-running channel resistance to close out April below trend line support guiding the corrective upswing from December 2016.

Euro vs US Dollar Monthly Chart

Near-term support is now at 1.1937, the 61.8% Fibonacci expansion. A daily close below that opens the door for a test of support shelf support at 1.1713. Alternatively, a move back above 1.2055-92 area (50% level, September 8 high) paves the way for a test of the 1.2154-73 zone (congestion are low, 38.2% Fib).

Euro vs US Dollar Daily Chart

Half of the short EUR/USD trade from 1.2407 remains in play after partial profit was booked at the position’s initial objective. The pair is too close to immediate support to make adding to exposure appear sensible from a risk/reward perspective. Opportunities to do so on a break or bounce will be actively sought however.

EUR/USD TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivakon 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.

DISCLOSURES