EUR/USD Price Analysis: Euro breaches trendline, November low exposed


  • EUR/USD has breached a three-month ascending trendline. 
  • Daily chart indicators are flashing bearish signals. 
  • The higher low of 1.0981 (November's low) could be put to test. 

EUR/USD is back on the defensive after an early-month bout of strength fell flat.

The currency pair reversed higher from 1.0981 at the end of November and rose above 1.12 on the new year day. The break above 1.12, however, was short-lived, as the spot fell to 1.11 on Jan. 10 and formed a lower high at 1.1173 on Jan.16 before falling to a seven-week low of 1.1036 on Thursday. 

More importantly, the pair closed at 1.1051 on Thursday, violating the support of the trendline rising from Oct. 1 and Nov. 29 lows. The breakdown of the trendline support has exposed the higher low of 1.0981 established on Nov. 29. 

Supporting the bearish case is the below-50 reading on the 14-day relative strength index. Further, the MACD histogram is charting deeper bars below the zero line, a sign of strengthening bearish momentum. 

The convincing move above Thursday's high of 1.1109 is needed to invalidate bearish pressures. 

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price 1.1051
Today Daily Change -0.0005
Today Daily Change % -0.05
Today daily open 1.1056
 
Trends
Daily SMA20 1.114
Daily SMA50 1.1104
Daily SMA100 1.1073
Daily SMA200 1.1133
 
Levels
Previous Daily High 1.1109
Previous Daily Low 1.1036
Previous Weekly High 1.1173
Previous Weekly Low 1.1086
Previous Monthly High 1.124
Previous Monthly Low 1.1002
Daily Fibonacci 38.2% 1.1064
Daily Fibonacci 61.8% 1.1081
Daily Pivot Point S1 1.1025
Daily Pivot Point S2 1.0994
Daily Pivot Point S3 1.0952
Daily Pivot Point R1 1.1098
Daily Pivot Point R2 1.114
Daily Pivot Point R3 1.1171

 

 

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