EUR/USD Technical Analysis: Euro Set to Test Below 1.12 Again?
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
Build confidence in your Euro trading strategy with our free guide!
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.
EUR/USD TRADING RESOURCES
- Just getting started? See our beginners’ guide for FX traders
- Having trouble with your strategy? Here’s the #1 mistake that traders make
- Join a free Trading Q&A webinar and have your questions answered
--- 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.