Never miss a story from Ilya Spivak

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Ilya Spivak

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

EUR/USD Technical Strategy: NET SHORT AT 1.2276

  • Euro down trend vs US Dollar intact amid consolidation near 1.18
  • Triangle chart setup hints bearish resumption is in the cards ahead
  • Waiting for confirmation to further scale up short EUR/USD trade

See our free guide to get help building confidence in your EUR/USD trading strategy!

The Euro is consolidating below the 1.18 figure against the US Dollar but chart positioning looks to favor a downward directional bias. Prices are hovering above resistance-turned-support marking the top of a two-year range having seemingly resumed a decade-long decline in early April.

EUR/USD Technical Analysis: Triangle Hints at Further Euro Losses

Turning to the daily chart, prices seem to have formed a Triangle pattern. That often precedes trend continuation, which in the context of the prior drop carries bearish implications. A daily close below the Triangle floor opens the door for a test of support in the 1.1527-77 area. Resistance is now at 1.1775.

EUR/USD Technical Analysis: Triangle Hints at Further Euro Losses

The EUR/USD short trade initiated at 1.2407 and thereafter scaled up near 1.19 continues to be in play. While the down move is expected to resume, adding to exposure here seems premature absent confirmation on a daily close below the Triangle’s lower bound.

EUR/USD TRADING RESOURCES

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

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