EUR/USD Technical Outlook Looking Lower
EUR/USD Technical Highlights:
- EUR/USD rolling over towards a lower-low
- A breakdown could lead price to the neckline of a H&S pattern
EUR/USD is rolling over towards the June low at 11847, which if broken will lead to a more substantial line of support that could constitute the neckline of a broad head-and-shoulders pattern. But before worrying about the longer-term pattern, we will want to pay attention to how price action plays out at the June low. If it holds then perhaps a larger congestion pattern forms before trading lower. It will take a fair amount of work at this juncture to turn the outlook bullish. If the low fails, then watch for a decline to the would-be neckline running over from September in the mid-11700s. This would be a big level to test.
For the full details, check out the video above.
EUR/USD Daily Chart (rolling towards big test)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.