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: Downtrend Intact Amid Consolidation

EUR/USD Technical Analysis: Downtrend Intact Amid Consolidation

Ilya Spivak, Head Strategist, APAC

EUR/USD Technical Strategy: NET SHORT AT 1.2153

  • Euro locked in familiar congestion area capped near 1.17 figure
  • Dominant trend trajectory continues to favor broadly bearish bias
  • EUR/USD short trade in play, looking for downtrend resumption

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

The Euro remains locked in a choppy consolidation range after a rebound from support near the 1.13 figure stalled below resistance capping gains since early June. In fact – a brief swoon in mid-August notwithstanding – the pair has barely budged from the same congestion area since late May.

Breaking above the outer layer of that barrier – now at 1.1702 – is needed to neutralize the near-term bearish bias. If that were to happen, the next resistance threshold would emerge in the 1.1840-52 area. Alternatively, a reversal back below support in the 1.1530-54 zone opens the door for descent back toward 1.13.

Euro vs US Dollar chart - daily

Pulling back from near-term price action to size up longer-term positioning on the monthly chart, it seems clear enough that the dominant downtrend stretching back over a decade is intact. Furthermore, the most recent leg of that move – launched in April of this year – shows no apparent signs of having ended.

Euro vs US Dollar chart - monthly

With that in mind, the EUR/USD short position initially triggered at 1.2407 and subsequently scaled up, first near 1.19 and then once again at 1.1660, remains in play. A stop-loss will be activated on a discretionary basis, although a daily close above 1.1702 seems like a compelling reason for an exit.

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

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

DISCLOSURES