EUR/USD Price Analysis: Breaks below 1.17, head-and-shoulders breakdown confirmed

EUR/USD's daily chart shows a head-and-shoulders bearish reversal pattern.
Key indicators support the case for deeper declines.

Omkar Godbole FXStreet Contributor

EUR/USD is currently trading below 1.17, having declined from 1.1773 to 1.1690 on Tuesday.

Notably, the pair closed well below 1.1770 on Tuesday, confirming a head-and-shoulders breakdown on the daily chart.

The bearish reversal pattern has created room for a continued decline to 1.1530 (target as per the measured move method).

The breakdown is backed by descending 5- and 10-day simple moving averages (SMAs) and a below-50 or bearish reading on the 14-day relative strength index.

The bearish bias will be neutralized if the pair finds acceptance above the former support-turned-resistance of 1.1770.

EUR/USD's bearish reversal indicates the dollar has bottomed out and heading higher against most currencies.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.1697
Today Daily Change	-0.0011
Today Daily Change %	-0.09
Today daily open	1.1708

Trends
Daily SMA20	1.1835
Daily SMA50	1.1771
Daily SMA100	1.1455
Daily SMA200	1.1228

Levels
Previous Daily High	1.1774
Previous Daily Low	1.1692
Previous Weekly High	1.1901
Previous Weekly Low	1.1738
Previous Monthly High	1.1966
Previous Monthly Low	1.1696
Daily Fibonacci 38.2%	1.1723
Daily Fibonacci 61.8%	1.1743
Daily Pivot Point S1	1.1675
Daily Pivot Point S2	1.1642
Daily Pivot Point S3	1.1593
Daily Pivot Point R1	1.1757
Daily Pivot Point R2	1.1807
Daily Pivot Point R3	1.1839

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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