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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Breaking news

U.S. Equities continue to get hit, Dow Jones now down more than 1,000 points

Euro May Fall vs. US Dollar If Chart Support Under 1.18 Gives Way

Euro May Fall vs. US Dollar If Chart Support Under 1.18 Gives Way

Ilya Spivak, Head Strategist, APAC

EURO, US DOLLAR, EUR/USD, TECHNICAL ANALYSIS – TALKING POINTS:

  • Euro upswing fizzles, producing ominous Shooting Star candlestick
  • Bearish reversal confirmation seems to call for a push under 1.1770
  • Lasting gains appear to require reclaiming a foothold above 1.20

A spirited Euro rebound against the US Dollar may be running out of steam. Prices put in a dramatic-looking Shooting Star candlestick on a retest of resistance near the 1.18 figure, marked by the a former swing high as well as a recently broken rising trend line dating back to late 2020. That speaks to indecision, which may precede capitulation and lead the way toward resumption of the broader decline from the peak in May.

Euro, US Dollar, EURUSD, EUR/USD chart

EUR/USD daily chart created withTradingView

Confirmation of reversal is elusive for now however. Zooming into the 8-hour chart, prices bolster the case for topping with the appearance of a bearish Evening Star candlestick pattern but former breakout resistance near the 1.18 figure remains in place as support, as does an upward-sloping trendline guiding recent gains. This paints the current pullback as corrective for the time being. A close under 1.1770 may change that.

Euro May Fall vs. US Dollar If Chart Support Under 1.18 Gives Way

EUR/USD daily chart created withTradingView

On the topside, a dense block of back-to-back resistance barriers warns that betting on lasting bullish follow-through may be premature even as sellers’ effort to turn the tide remains incomplete. Congestion areas in the 1.1844-87 and 1.1952-84 zones follow back-to-back after one another, so opening the door for a truly expansive rise appears to be a herculean task. If 1.20 can be firmly retaken, 1.21 may follow soon thereafter.

EURO TRADING RESOURCES

--- Written by Ilya Spivak, Head Strategist, APAC at 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