EUR/USD Price Analysis: Charting a bear pennant on the daily sticks
|- EUR/USD posts small gains, bulls attempting the last dance?
- Daily technical setup shows a potential bear pennant.
- Focus on Friday’s close is critical to gauge the next direction.
EUR/USD is back in the green zone, reversing Thursday’s bearish momentum, as the US dollar remains on the back foot amid risk aversion-led weakness in the Treasury yields.
Despite the latest bounce, the spot remains below the key 1.1750 barrier, now trading at 1.1736, up 0.08% on the day.
From a near-term technical perspective, EUR/USD’s daily chart has taken the shape of a bear pennant formation, in the wake of the recent sell-off that followed a brief consolidative phase.
A daily closing below the rising trendline support at 1.1712 is needed to validate the bearish formation, which will confirm deeper losses in the coming days.
The 14-day Relative Strength Index (RSI) trades flat but remains below the midline, keeps floors open for further downside.
Confirmation of the bearish continuation pattern could expose the September lows at 1.1612.
EUR/USD: Daily chart
Alternatively, Wednesday’s high of 1.1754 offers immediate resistance to the euro buyers.
Acceptance above the latter would invalidate the potential bear pennant, calling for a test of the August 9 high of 1.1769.
Further up, a test of the bearish 21-Daily Moving Average (DMA) at 1.1798 cannot be ruled out.
EUR/USD: Additional levels to consider
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.