Skip to Content
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. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
EUR/USD Technical Analysis: Euro Double Top in the Works?

EUR/USD Technical Analysis: Euro Double Top in the Works?

What's on this page

EUR/USD TECHNICAL ANALYSIS: BEARISH

  • Euro recovery puts prices back at October swing high
  • Cautious signs of ebbing momentum hint at double top
  • Actionable short trade setup confirmation still pending

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

The Euro has recovered to trade near its monthly peaks against the US Dollar once again having found support in the 1.1069-76 inflection region. The appearance of a Doji candlestick ahead of resistance in the 1.1183-89 area – marked by the October 18 high and the 38.2% Fibonacci expansion – speaks to indecision, suggesting the pair may not muster the wherewithal for a breakout.

A turn lower that puts prices back below 1.1069 on a daily closing basis would violate the bounds of the near-term uptrend and set the stage for resumption of the long-term downtrend. The 1.10 figure lines up as next downside inflection point thereafter.Alternatively, a break higher exposes the next topside barrier at 1.1225, the 50% Fib level.

Euro vs US Dollar price chart - daily

Daily EURUSD chart created in TradingView

Zooming in to the four-hour chart reveals early signs of negative RSI divergence. While this might mean little beyond near-term consolidation before another foray upward, it might likewise mark the beginning of a more substantive loss of bullish momentum. In turn, this might develop into a reversal. Pushing below resistance-turned-support in the 1.1063-71 zone seems like a prerequisite for follow-through.

Euro vs US Dollar price chart - 4 hour

4-hour 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 @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES