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.

Dhwani Mehta FXStreet

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

EUR/USD

Overview
Today last price	1.1735
Today Daily Change	0.0003
Today Daily Change %	0.03
Today daily open	1.173

Trends
Daily SMA20	1.1802
Daily SMA50	1.1891
Daily SMA100	1.1962
Daily SMA200	1.2011

Levels
Previous Daily High	1.1748
Previous Daily Low	1.1724
Previous Weekly High	1.19
Previous Weekly Low	1.1755
Previous Monthly High	1.1909
Previous Monthly Low	1.1752
Daily Fibonacci 38.2%	1.1733
Daily Fibonacci 61.8%	1.1739
Daily Pivot Point S1	1.172
Daily Pivot Point S2	1.1709
Daily Pivot Point S3	1.1695
Daily Pivot Point R1	1.1744
Daily Pivot Point R2	1.1759
Daily Pivot Point R3	1.1769

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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