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
Bullish
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
GBP/USD
Mixed
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
USD/JPY
Bullish
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
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
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • The US Dollar rally may extend on technical signals. The Japanese #Yen rose with #gold prices as #coronavirus fears sank equities across the globe, leaving investors on the edge again here - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/02/19/US-Dollar-Uptrend-May-Prolong-Yen-Gains-as-Equities-Fall-Globally.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/wDGBH3hLcb
  • RT @lisaabramowicz1: China’s economy was likely running at just 40%-50% capacity last week: Bloomberg Economics https://t.co/zkRkm5VzxU
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/1:00 AM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTCTm44 https://t.co/GmUZSp9bvu
  • 🇯🇵 JPY Trade Balance (JAN), Actual: -¥1312.6b Expected: -¥1684.8b Previous: -¥154.6b https://www.dailyfx.com/economic-calendar#2020-02-18
  • 🇯🇵 JPY Machine Orders (YoY) (DEC), Actual: -3.5% Expected: -1.3% Previous: 5.3% https://www.dailyfx.com/economic-calendar#2020-02-18
  • 🇯🇵 JPY Machine Orders (YoY) (DEC), Actual: -12.5% Expected: -1.3% Previous: 5.3% https://www.dailyfx.com/economic-calendar#2020-02-18
  • 🇯🇵 JPY Trade Balance (JAN), Actual: -1312.6B Expected: -¥1684.8b Previous: -¥152.5b https://www.dailyfx.com/economic-calendar#2020-02-18
  • RT @CNBCJou: European car sales -7.4% - France: -13.4% - Germany: -7.3% - Spain: -7.6% #autos
  • Heads Up:🇯🇵 JPY Machine Orders (YoY) (DEC) due at 23:50 GMT (15min), Actual: N/A Expected: -1.3% Previous: 5.3% https://www.dailyfx.com/economic-calendar#2020-02-18
  • Heads Up:🇯🇵 JPY Trade Balance (JAN) due at 23:50 GMT (15min), Actual: N/A Expected: -¥1684.8b Previous: -¥152.5b https://www.dailyfx.com/economic-calendar#2020-02-18
EUR/USD Technical Analysis: Euro Rise Unlikely to Undo Downtrend

EUR/USD Technical Analysis: Euro Rise Unlikely to Undo Downtrend

2019-10-16 02:30:00
Ilya Spivak, Sr. Currency Strategist
Share:

EUR/USD TECHNICAL ANALYSIS: BEARISH

  • Euro breaks 4-month resistance, opening the door for an upswing
  • Dominant trend likely to remain bearish through corrective gains
  • Monthly chart warns the Euro is on pace to revisit two-year lows

Get help building confidence in your EUR/USD strategy with our free trading guide!

The Euro has broken falling trend line resistance guiding it lower against the US Dollar since late June, suggesting a correction higher is afoot. From here, a daily close above the 38.2% Fibonacci retracement at 1.1083 opens the door for a test of the 50% level at 1.1146.

Breaking below counter-trend support set from the October 1 low looks to be a minimum pre-requisite to reengaging the downtrend. A daily close below that as well as resistance-turned-support at the just-broken trend line sets the stage to challenge the monthly low at 1.0879 once again.

EUR/USD Technical Analysis: Euro Rise Unlikely to Undo Downtrend

Daily EURUSD chart created in TradingView

All the same, the dominant trend bias continues to look decidedly bearish. A look at the weekly chart shows prices locked in a well-defined descent for the past 16 months. Invaliding that calls for a break north of that move’s upper boundary, now just a hair below the 1.13 figure.

EUR/USD Technical Analysis: Euro Rise Unlikely to Undo Downtrend

Weekly EURUSD chart created in TradingView

The monthly chart looks still more ominous. It seems to show the Euro poised to prolong what has been a more than decade-long decline. Prices finished September with a break of the multi-year price inflection barrier at 1.0980. That seems to set the stage for a test of the 1.0459-1.0563 zone in the months ahead.

Euro vs US Dollar price chart - monthly

Monthly EURUSD chart created in TradingView

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.