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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • Join @JWagnerFXTrader 's #webinar at 9:30 AM ET/1:30 PM GMT at the US market opening bell. Register here: https://t.co/9pXwJzGj54 https://t.co/fv1BPC7j4n
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.05%, while traders in US 500 are at opposite extremes with 76.29%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/o62p1BdjzF
  • LIVE NOW: Join Technical Strategist @MBForex as he hosts his Weekly Strategy Webinar on the setups we're tracking into the open! https://t.co/dFw88WP8eH
  • RT @chigrl: ICYMI overnight >#China seeks $2.4 billion in sanctions against U.S. in Obama-era case: WTO https://t.co/p7O1taMbsO https://t.…
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.35% 🇦🇺AUD: 0.33% 🇬🇧GBP: 0.26% 🇪🇺EUR: 0.02% 🇨🇭CHF: -0.04% 🇯🇵JPY: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/yNdPOvkwdE
  • Weekly Strategy Webinar starting in 15mins on DailyFX! https://t.co/RgnsklZ2Gl
  • Currency Wars: Tools that are used in a currency war https://www.dailyfx.com/forex/fundamental/article/special_report/2019/10/16/Currency-Wars-What-to-Expect-if-a-Currency-War-Breaks-Out.html?CHID=9&QPID=917713
  • CFTC update - Surprisingly, $GBP net shorts were relatively unchanged, despite the 5% rally. Adds further fuel to an extended rise - Weak demand for safe havens as speculators flip to net short in $JPY - $NZD bearish positions still very extreme https://www.dailyfx.com/forex/technical/article/cot/2019/10/21/GBPUSD-Shorts-Unchanged-Despite-Rally-Japenese-Yen-Flips-to-Short---COT-Report.html?CHID=9&QPID=917713 https://t.co/PxKOjjXjS4
  • RT @JMahony_IG: Useful graphic from @ING_Economics 'Where it could go wrong for UK prime minister Boris Johnson' #Brexit #BrexitVote https…
  • Join @MBForex 's at 8:30 AM ET/12:30 PM GMT for his weekly #scalping #webinar Register here: https://t.co/VAnAfZU02T https://t.co/MDGLWr8s3Z
EUR/USD Technical Analysis: Choppy Range Belies Bearish Bias

EUR/USD Technical Analysis: Choppy Range Belies Bearish Bias

2019-01-08 02:30:00
Ilya Spivak, Sr. Currency Strategist
Share:

EUR/USD Technical Strategy: SHORT AT 1.1297

  • Euro stuck in choppy range below 1.15 mark for nearly 2 months
  • Inconclusive near-term setup keeps long-term bearish bias intact
  • Break below support near 1.13 needed for downside acceleration

Build confidence in your Euro trading strategy with our free guide!

The Euro has struggled to make substantive directional progress against the US Dollar since mid-November. The currency pair is stuck below well-worn resistance in the 1.1456-81 area having failed on multiple attempts to establish a foothold above it on a closing basis. Support is marked by a rising trend line, now at 1.1311.

EUR/USD Technical Analysis: Choppy Range Belies Bearish Bias

Sizing up longer-term positioning however, the overall trend bias still looks firmly bearish despite the recent standstill. The weekly chart shows prices capped by resistance guiding the down move started nearly a year ago after the break of the 2017 advance.

EUR/USD Technical Analysis: Choppy Range Belies Bearish Bias

Turning to the monthly chart, the next leg of the decade-long decline still looks to be ahead after prices broke long-standing resistance-turned-support in the 1.1449-1.1554 zone. The barrier even held up on a retest in the past two months, reinforcing the validity of the breakdown.

EUR/USD Technical Analysis: Choppy Range Belies Bearish Bias

With that in mind, the short EUR/USD trade activated at 1.1297 will remain in play. The original setup has materially changed but the overall logic behind establishing exposure seems to still make sense. Opportunities to add to the trade will be evaluated as they arise. A stop-loss will be triggered on a discretionary basis.

EUR/USD TRADING RESOURCES

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

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

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

DISCLOSURES

News & Analysis at your fingertips.