EUR/USD Technical Strategy: BEARISH
- Euro fails to make good on channel top break, falters above 1.14
- Break of counter-trend support puts March bottom back in focus
- Near-term down move invalidation point now just above 1.13
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The Euro bungled an attempted upside breakout against the US Dollar. The currency pushed through channel top resistance only to be rejected downward, establishing another in a sequence of lower highs defining the down move since late September 2018.
The first layer of significant support is now at 1.1176, the March 7 low. A breach below that confirmed on a daily closing basis exposes the next layer of support in the 1.1110-32 area. Invalidation of the overall bearish bias would need a break and close above trend line resistance at 1.1434.
Turning to the four-hour chart, prices appear to have broken rising counter-trend support guiding the move higher form the March 7 low and followed through with a breach below the inflection point at 1.1289. 1.1176 A resistance line marking invalidation for the near-term down move now looks to be at 1.1304.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
To contact Ilya, use the comments section below or @IlyaSpivak on Twitter
