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


Today last price 1.1673
Today Daily Change -0.0002
Today Daily Change % -0.02
Today daily open 1.1675
Daily SMA20 1.1774
Daily SMA50 1.1789
Daily SMA100 1.165
Daily SMA200 1.1312
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



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