Never miss a story from Ilya Spivak

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Ilya Spivak

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

EURUSD TECHNICAL ANALYSIS: BEARISH

  • Euro resolves conflicted chart setup with decisive support break
  • Clearing resistance near 1.12 needed to neutralize bearish bias
  • Monthly chart setting the stage to test supports below 1.10, 1.05

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

The Euro appears to have decisively resolved conflicted technical positioning in sellers’ favor, as expected. The single currency punched through support cutting off downside progress since late April in the 1.1107-16 area, sinking to the lowest level in over two years against the US Dollar.

Near-term support is now marked by the 50% Fibonacci expansion at 1.1040. A daily close below that exposes the 61.8% level at 1.0952 next. Resistance begins at 1.1128 – the 38.2% Fib – but clearing a trend line defining the drop from June’s swing top seems necessary to neutralize immediate selling pressure in earnest.

EURUSD price chart - daily

Daily EURUSD chart created in TradingView

Zooming out to the monthly chart for a bit of perspective, it is revealed that July marked the largest drop since May 2018. More ominously still, prices have been making steady progress downward after breaking support near 1.15 in October. The puts an inflection level at 1.0980 in focus, followed by a key floor below 1.05.

EURUSD Technical Analysis: Breakdown Eyes Support Below 1.10

Monthly EURUSD chart created in TradingView

EURUSD TRADING RESOURCES

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

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