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
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
EUR/USD Technical Analysis: Euro Rally Rejected at Chart Barrier

EUR/USD Technical Analysis: Euro Rally Rejected at Chart Barrier

What's on this page


  • Euro chart setup hints near-term upside momentum may be ebbing
  • Breaking support near 1.10 might expose October’s swing bottom
  • Longer-term positioning argues for still deeper losses in the cards

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

The Euro seemed to hit a wall on another attempt to breach resistance in the 1.1069-80 area. Prices tagged a one-month high above the 1.11 figure intraday but scurried all the way back by session close, producing a dramatic-looking Shooting Star candlestick.

This along with early signs of negative RSI divergence may be indicative of ebbing bullish momentum, which might in turn set the stage for a reversal lower. Initial support is in the 1.0968-90 zone, with a daily close below that opening the door to retest October’s swing low at 1.0879.

Alternatively, securing a foothold above resistance – again, on a daily closing basis – puts the next upside barrier in the 1.1176-83 region into the spotlight. Overtaking that would neutralize immediate selling pressure established with a break of rising counter-trend support at the start of November.

Euro vs US Dollar price chart - daily

Daily EUR/USD chart created with TradingView

Longer term positioning seems to argue in favor of a downside scenario. EUR/USD appears to be firmly confined within the bounds of a well-defined descent in play since mid-2018. In fact, price action over recent weeks may well mark the start of the next leg lower following another test of resistance.

If bearish follow-through materializes, prior trend dynamics imply an average drawdown of about 4.5 percent is ahead, putting the Euro just below the 1.07 figure. Technical confirmation must still present itself to make such projections actionable however.

Euro vs US Dollar price chart - weekly

Weekly EUR/USD chart created with TradingView


--- Written by Ilya Spivak, Currency Strategist for

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.