EUR/USD nearing a break of the double-bottom to lowest since 2017 – 5 levels to watch

EUR/USD is trading close to the 2019 low of 1.1107.
If it breaks below the double-bottom, the fall could be rapid
Five levels from 2017 levels come into play in this scenario.

Yohay Elam FXStreet

EUR/USD is falling amid US-Sino tensions around trade and technology and US-EU tensions around trade and the Iran deal.

The world's most-popular currency pair trades around 1.1130, close to the recent 2019 trough of 1.1107 recorded last week. That 2019 was just three pips below the previous yearly low of 1.1110 – turning it into a de-facto double-bottom.

Breaking below such a support line indicates strong momentum according to technical analysis textbooks and may trigger a massive fall. Moreover, the trend is clearly to the downside with EUR/USD capped by the 50-day, 100-day, and 200-day Simple Moving Averages.

EUR/USD levels to watch

EUR USD technical levels to watch daily chart May 30 2019

The lows of 2019 were last seen in 2017, and so are the levels below them. The first noteworthy level is 1.1025, which capped EUR/USD in early May 2017.

The second cushion is quite close: 1.0970 was a swing low in July 2017. It is a weaker line of support.

Next, down the line, we find the third level, which is already much lower – 1.0815 was the low point after the currency pair gapped higher in April 2017.

The fourth technical level to watch awaits just before that gap, at 1.0770 and at the same time.

The fifth and last level to watch is 1.0570, which also dates back to April 2017.

Looking up, 1.1190, 1.1265, and 1.1330 – all recent resistance lines – await EUR/USD in case it recovers.

More EUR/USD forecast: Bears likely to aim 5-month old descending trend-channel support

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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