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 Pop Failing at Range Top?

EUR/USD Technical Analysis: Euro Pop Failing at Range Top?

What's on this page

EUR/USD TECHNICAL ANALYSIS: BEARISH

  • Euro surges to 4-month high but struggles to break range top
  • Negative RSI divergence hints rally may reverse course soon
  • Reversal confirmation needs break of 2-week trend support

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

The Euro is testing the top of the range confining price action since mid-October in the 1.1176-83 area. A break higher confirmed on a daily closing basis may set the stage for a push beyond the 1.13 figure, with a minor barrier at 1.1348 lining up thereafter on route to the late June high of 1.1412.

Immediate support is marked by a rising trend line connecting swing lows defining the upswing from the October 29 low, now at 1.1094. A reversal back below that opens the door for another challenge of support in the 1.0968-90 congestion area.

Euro vs US Dollar price chart - daily

Daily EUR/USD chart created with TradingView

Near-term positioning suggests the upside foray may be repelled. The four-hour chart shows EUR/USD stalling at double top resistance as negative RSI divergence points to ebbing upside momentum. That might be laying the groundwork for a reversal downward.

Any weakness that follows from here will need to conclusively clear two-week uptrend support to make a convincing case for bearish follow-through, even in the near term. The long side seems no more attractive however – at least for now – as prices’ proximity to resistance speaks to adverse risk/reward parameters.

Euro vs US Dollar price chart - 4 hour

4-hour EUR/USD chart created with TradingView

EUR/USD Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 6% 0% 3%
Weekly 41% -20% 6%
What does it mean for price action?
Get My Guide

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