EUR/USD Technical Analysis: Euro Sellers Take Aim at Key Support
Date
1/17/2019 11:01:49 PM
(MENAFN- DailyFX) EUR/USD Technical Strategy: BEARISH Euro range break unravels, rally rejected at 12-month resistance line Sellers now targeting key counter-trend support just above 1.13 figure Break lower would point to resumption of the long-term down trend Build confidence in your Euro trading strategy with our free guide!
The Euro failed to make good on an attempted break higher from a range confining price action against the US Dollar since late October. The pair briefly breached resistance in the 1.1456-81 area but the upswing ran out of steam on a test of trend line resistance set from January 2018 . A test of this barrier produced a bearish Evening Star candlestick, which was soon followed by a drop back into familiar territory.
Sellers are now eyeing counter-trend support guiding the upswing from lows set in mid-November. A daily close below this barrier now at 1.1328 would suggest the dominant long-term decline is ready to be reasserted. The first downside hurdle to follow is the November 12 low at 1.1216, followed by a support shelf in the 1.1110-32 zone.
The 1.1456-81 region is back as immediate resistance. Another foray above it would open the door for a test of 1.1554. This appears to be a pivotal spot for bears, marking the intersection of trend line resistance and a chart inflection area in play since November 2017. Establishing a foothold above this would go a long way toward de-fusing immediate selling pressure.
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