EUR/USD Eyes Extending its Losses - EUR to US Dollar Price Technical Forecast
EUR/USD Technical Analysis
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EUR/USD – Bearish Development
On Oct 31, EUR/USD rallied then stopped at 1.1175. Last Monday, buyers attempted to rally the price above this level however, they have not been successful. Consequently, the pair pulled back and created the second top of double top pattern.
On Wednesday, sellers ended the sideways move and pressed the price below the neckline of double top pattern located at 1.1073 as discussed in our last update: EURUSD may be on verge of a breakout
Alongside this, the Relative Strength Index (RSI) dropped below 50 highlighting a possible start of downtrend momentum.
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EUR/USD Daily PRice CHART (Mar 31, 2017 – Nov 11, 2019) Zoomed Out
EUR/USD Daily Price CHART (July 3 – Nov 11, 2019) Zoomed in
Looking at the daily chart, we notice on Thursday EUR/USD declined to a lower trading zone 1.0912- 1.1050. On Friday, the price closed below 50-day average generating more bearish signals.
Therefore, EURUSD could be on the way towards the low of current trading zone mentioned above. Further close below the low end may see the price trading even lower towards 1,0812. Although, the weekly support levels underlined on the chart (zoomed in) should be kept in focus.
That said, a close above 1.1060 could return EURUSD to trade in a sideways move and hint to test 1.1220. Nevertheless, the price should clear first the daily and weekly resistance levels and area marked on the chart.
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EUR/USD four Hour Price CHART (SEp 26 – Nov 11, 2019)
From the four-hour chart, we notice on Nov 5 EUR/USD started a downtrend move creating a series of lower highs with lower lows.
Hence, a break below 1.0991 could send EURUSD towards 1.0940. However, the downtrend move may weaken if sellers decide to take profit at 1.0963 . On the other hand, a break above 1.1130 could embolden buyers to push for a test of the second high of double top pattern residing at 1.1175. Although, the daily resistance level underscored on the chart should be considered.
See the chart to know more about key levels the price would encounter in a further bullish/ bearish move.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.