News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
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
Oil - US Crude
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
Wall Street
Bearish
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
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Breaking news

Brexit Talks Reportedly Set to Resume, Aiming for a Deal by Mid-November, GBP/USD Extends Gains

Real Time News
  • Hey traders! Get your Wednesday market update from @JohnKicklighter 👇 https://t.co/9VJzrpgWGv
  • Italy new daily virus cases rise to a record 15,199 - BBG
  • RT @C_Barraud: 🇮🇹 #ITALY REPORTS 15,199 NEW #CORONAVIRUS CASES (New Record) VS 10,874 TUESDAY - BBG *ITALY'S CONTE: CANNOT RULE OUT OTHER…
  • Going live for this week's webinar in 5 minutes, join here - https://www.dailyfx.com/webinars/782324475 We'll talk earnings, stimulus and technical setups on the big ticket indices
  • $USDJPY: Hello 104, we meet again - Speed of the move to grab Japanese authorities attention again https://t.co/XfTkqPBUm3
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 1.69% 🇳🇿NZD: 1.41% 🇦🇺AUD: 1.10% 🇪🇺EUR: 0.46% 🇨🇭CHF: 0.42% 🇨🇦CAD: 0.17% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/HPx1hmmXjQ
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: 0.48% Wall Street: 0.37% Germany 30: -0.83% France 40: -1.06% FTSE 100: -1.66% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qloFTR4T77
  • EU negotiators are expected to go to London as soon as tomorrow to resume trade talks - sources $GBP
  • The US dollar continues to leak lower and the dollar basket (DXY) is now below a noted short-term support level around 93.00. What does this mean for $USDJPY? Find out from @nickcawley1 here:https://t.co/U6LkwG1JYH https://t.co/TPAMVCpJLE
  • 🇺🇸 EIA Cushing Crude Oil Stocks Change (16/OCT) Actual: 0.975M Previous: 2.906M https://www.dailyfx.com/economic-calendar#2020-10-21
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, Head Strategist, APAC
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