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
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The AUD has been hit by the risk-appetite pullback occasioned by the spread of Wuhan-strain coronavirus. This week may see domestic focus return, if headlines allow, with key inflation data due. Get your $AUDUSD market update from @DavidCottleFX here: https://t.co/UIpwno0pSq https://t.co/kib4d1mA0q
  • RT @anilvohra69: USD inverted (red) is correlated to Excess Reserves (blue) and Reserve Balances (green). 1/2 https://t.co/bbO1pPWY4F
  • RT @FactSet: $SPX is reporting a decline in earnings of -1.9% for Q4, led by the Energy (-42%), Consumer Discretionary (-14%), and Material…
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/6iMyDFqnqe
  • Knowing how to accurately value a #stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/2mjzvYvgSn
  • Previewing the Texas Rangers new home! https://t.co/WITZGSQPlc
  • Thanks for having me on @MartinSEssex https://t.co/fg8uOe16wr
  • The MACD is often used with its default setting when entering trades. However, this versatile indicator can be customized to assist traders in exiting trades too. Learn how to better incorporate the MACD into your trading strategy here: https://t.co/HnY7gzsI2q https://t.co/5F1DSvAXyy
  • What are some factors affecting $GBP as we head into 2020, quarter one? Download your Sterling fundamental forecast with @nickcawley1 here to find out: https://t.co/YfDSYSATK9 https://t.co/ANFLIuDY4J
  • Trading Global Markets new #podcast features @DailyFX Anlayst @PeterHanksFX , who discusses what assets would benefit in the next #recession. Tune into this new podcast episode hosted by @MartinSEssex here: https://t.co/Twr44cZ1GB https://t.co/llKzvZGDpQ
EURUSD Technical Analysis: Downside Favored as Prices Consolidate

EURUSD Technical Analysis: Downside Favored as Prices Consolidate

2019-07-22 23:00:00
Ilya Spivak, Sr. Currency Strategist
Share:

EURUSD TECHNICAL ANALYSIS: NEUTRAL

  • Near-term Euro technical positioning vs US Dollar still looks conflicted
  • Bullish, bearish setups escape invalidation, but follow-through is absent
  • Monthly chart analysis hints the path of least resistance still points lower

See the latest Euro technical and fundamental forecast to find out what will drive prices in Q3!

Euro technical positioning against the US Dollar continues to send conflicting cues. Lasting upside follow-through has failed to materialize following the completion a bullish Falling Wedge chart formation, at least so far. A subsequent break of rising trend support guiding the upswing from late May lows – a would-be sign of bearish reversal – has likewise struggled to translate into substantive development.

Resistance-turned-support at the wedge top is holding up for now, beckoning further confirmation before the setup can be well and truly invalidated. Broken trend line support has likewise held up as resistance on multiple retests however, warning that the bearish implications of its breach can still make claim to technical validity as well. An actionable trade setup seems difficult to divine under such conditions.

EURUSD Technical Analysis: Downside Favored as Prices Consolidate

This seems like an opportune time to zoom out to the monthly chart for a bit of perspective. The setup seems quite a bit clearer here: EURUSD has been locked in a well-defined downtrend for over a decade, with a rejection from resistance in early 2018 leading to the break of range resistance-turned-support near the 1.15 mark. That seems to put the next major inflection point around the 1.05 figure.

Euro vs US Dollar price chart - monthly

On balance, this establishes the path of least resistance as probably favoring the downside. This might suggest traders looking for an end to near-term congestion to approach any buying opportunities with a greater degree of caution than the alternative. This could be reflected in mitigating risk management measures, including smaller than normal position size and/or a more conservative approach to setting stop-loss parameters.

EURUSD 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

News & Analysis at your fingertips.