EUR/USD technical analysis: breaking important support levels
EUR/USD is starting to trade below a couple of major thresholds, outlook turning increasingly bearish.
EUR/USD Technical Outlook
- EUR/USD below March trend line
- Price also below the September high
- Outlook turning increasingly bearish
The EUR/USD is currently trading below the trend line running higher since March that passes under the November low. In confluence with this trend line is the September high at $1.2011, making the current break a potentially important one. A little more separation is needed, i.e. a strong daily close below $1.2011.
At the time of this writing the price is under, but not in a really convincing manner. That could be about to change. In the event we see a strong push under confluent support, the next area of support arrives around the $1.1920/$1.1885 area, where both price and a channel line run into one another.
Tactically speaking, a solid close below support clears a bearish trading bias down to support where a bounce may offer another potential entry for those seeking to trade a breakdown followed by a pullback entry point. With major support broken, an eventual move to the 200-day could be in order. It is currently at $1.1683 and rising.
From the standpoint of a bullish trading outlook. If the breakdown were to be rejected at confluent support either today or very soon, then a good line in the sand may offer solid risk/reward for those looking for trend resumption from the March low. The next spot to watch should broader support fail will be the $1.1920/$1.1885 area.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
