EUR/USD May Have One More Move Left Before Year End
EUR/USD Technical Highlights:
- EUR/USD choppy near-term price action within clear downtrend
- Could get one more move before year-end on a wedge break
The EUR/USD has been chopping sideways for a few weeks now. It looked as though that was going to come to an end last week, it wasn’t to be. The wedge we looked at a week or so ago has done a bit of shape-shifting by changing its size. Not an uncommon occurrence with these patterns.
There is still time left despite holiday trading mode for the Euro to embark on one more move before year-end. Giving the trend the benefit of the doubt, a break below 11221 could set into motion a move below the 11186 level that marks the bottom of the wedge pattern.
A break below that swing-low will have EUR/USD trading into new cycle lows with the 11000 level as the target. On the flip-side, a break above the June to current slope and recent high at 11360 could spark a squeeze towards the 11500 level. The 11500 marks confluence between a trend-line from May and the March 2020 spike-high.
In either event, a break above resistance or below support should trigger a move that could sustain into the near year.
For the full details, check out the video above.
EUR/USD Daily Chart
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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.