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.

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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
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
Bitcoin
Mixed
More View more
Real Time News
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/z49NzgZrXd
  • RT @malkudsi: Natural Gas Eyes Pushing Higher as Support Holds - Nat Gas Technical Analysis More details in the link below: https://t.co/HG…
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/swcuwAMGAk
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/4adyTWvQ22
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/gLJGj1FAOC
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/J0MMkVmCUu
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/ZfPUxHWeiG
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
  • EUR/USD has been weakening since the start of 2020 and the decline has accelerated this month. At some point there will be a correction but further losses are still likely as the year progresses. Get your $EURUSD market update from @MartinSEssex here: https://t.co/ieJUBNeAIf https://t.co/Dw4f7DQocg
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
EUR/USD Technical Analysis: Euro Downtrend May Have Restarted

EUR/USD Technical Analysis: Euro Downtrend May Have Restarted

2020-01-24 01:00:00
Ilya Spivak, Sr. Currency Strategist
Share:

EUR/USD TECHNICAL ANALYSIS: BEARISH

  • Euro break of 4-month support sets the stage for downtrend resumption
  • Initial support at 1.0968, breakdown may expose October swing bottom
  • Close above 1.1149 probably needed to offset near-term selling pressure

The Euro has broken support guiding its recovery against the US Dollar since the beginning of October. That paints the rise as corrective within the context of longer-term downtrend that has now apparently resumed. The reversal has been in the making since the beginning of the year, following in the wake of a false breakout above the 1.12 figure (as expected).

From here, the next layer of immediate support lines up in the 1.0968-90 congestion region. A break below that confirmed on a daily closing basis probably opens the door to a challenge of October’s swing bottom at 1.0879. Neutralizing immediate selling pressure likely requires a reversal to close above downward-sloping resistance set from the December 31 high, as well as the inflection point at 1.1149.

Euro vs US Dollar price chart - daily

EUR/USD daily chart created with TradingView

EUR Forecast
EUR Forecast
Recommended by Ilya Spivak
Get Your Free EUR Forecast
Get My Guide

Measuring the depth of prior downswings within the current trend – in play since mid-2018 – produces an average decline of 4.6 percent. A repeat of these trading patterns here would imply a move lower that puts EUR/USD just above the 1.07 figure. That would amount to the lowest level since April 2017. Naturally, immediately prevailing market conditions might still dictate a larger or smaller move.

EUR/USD Technical Analysis: Euro Downtrend May Have Restarted

EUR/USD weekly chart created with TradingView

EUR/USD TRADER SENTIMENT

EUR/USD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -14% -5% -12%
Weekly -5% 20% 0%
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

News & Analysis at your fingertips.