EUR/USD Price Analysis: Bear flag breakdown on D1


  • EUR/USD's bear flag breakdown has exposed September lows. 
  • The daily chart RSI also favors deeper losses. 

The path of least resistance for EUR/USD is to the downside. 

The pair fell by over 0.6% on Wednesday, confirming a bear flag breakdown on the daily chart. The breakdown indicates the sell-off from the Sept. 1 high of 1.2011 has resumed. As such, a re-test of the Sept. 25 low of 1.612 looks likely.

Supporting the case for a deeper drop is the below-50 or bearish reading on the 14-day relative strength index. Also, the daily chart MACD histogram is printing deeper bars below the zero line. That's a sign of the strengthening of bearish momentum. 

The bearish outlook would be invalidated if the pair finds acceptance above Thursday's high of 1.1758. At press time, the pair is trading largely unchanged on the day near 1.1673.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price 1.1673
Today Daily Change -0.0002
Today Daily Change % -0.02
Today daily open 1.1675
 
Trends
Daily SMA20 1.1774
Daily SMA50 1.1789
Daily SMA100 1.165
Daily SMA200 1.1312
 
Levels
Previous Daily High 1.1759
Previous Daily Low 1.165
Previous Weekly High 1.1881
Previous Weekly Low 1.1703
Previous Monthly High 1.2011
Previous Monthly Low 1.1612
Daily Fibonacci 38.2% 1.1692
Daily Fibonacci 61.8% 1.1717
Daily Pivot Point S1 1.163
Daily Pivot Point S2 1.1586
Daily Pivot Point S3 1.1522
Daily Pivot Point R1 1.1739
Daily Pivot Point R2 1.1803
Daily Pivot Point R3 1.1847

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

USD/JPY ignores downbeat Tokyo CPI, trades mixed above 104.00

USD/JPY traders look for strong signals to break the chain of three-day declines. Tokyo CPI slipped below -0.6% forecast, core CPI matched -0.7% expected in November. Risks struggle amid US off, mixed news on vaccine, US-China front. A light calendar can extend the sideways moves.

USD/JPY News

AUD/USD: Fizzles upside momentum below 0.7400 but bears await clear signals

AUD/USD eases after refreshing the three-month top the previous day, downside have recently been confined though. Chatters surrounding US-China relations, virus woes probe risk-on but absence of the US traders, light calendar elsewhere, limits the moves.

AUD/USD News

Gold: Bears noting old support for a discount

The price of gold has broken into bearish territory below a 38.2% Fibonacci retracement. In the recent good news in markets, the price of the yellow metal has come under renewed pressure. Bears will seek a discount on a pullback to retest old support, expected to turn resistance. 

Gold news

WTI regains $45.00 even as choppy session limits the moves

WTI fades pullback moves from the highest in nine months. The energy benchmark eased from the multi-day high the previous day as global optimism, mainly fuelled through the coronavirus (COVID-19) vaccine hopes, fizzled. Also challenging the oil bulls was the US holiday due to Thanksgiving Day.

Oil News

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures