- EUR/USD's failed breakout has shifted risk in favor of a drop to 1.11.
- The key indicator has violated the ascending trendline in favor of the bears.
EUR/USD may face selling pressure with the 4-hour chart reporting a failed breakout.
The common currency jumped to highs above 1.1160 on Thursday, confirming an upside break of the descending channel from Dec. 31 and Jan. 6 highs.
The breakout signaled an end of the pullback from 1.1240 and a resumption of the rally from the November low of 1.0981.
That bullish move, however, did not happen and the pair fell from 1.1174 to 1.1128, invalidating the descending channel breakout.
A failed breakout is widely considered as a powerful bearish signal. So, a drop to 1.11 or lower cannot be ruled out, more so, as the 4-hour chart RSI has breached the ascending trendline.
A convincing move above 1.1170 is needed to revive the bullish setup. At press time, EUR/USD is trading 1.1136.
|Today last price||1.1136|
|Today Daily Change||-0.0002|
|Today Daily Change %||-0.02|
|Today daily open||1.1138|
|Previous Daily High||1.1174|
|Previous Daily Low||1.1128|
|Previous Weekly High||1.1208|
|Previous Weekly Low||1.1085|
|Previous Monthly High||1.124|
|Previous Monthly Low||1.1002|
|Daily Fibonacci 38.2%||1.1145|
|Daily Fibonacci 61.8%||1.1156|
|Daily Pivot Point S1||1.1119|
|Daily Pivot Point S2||1.1101|
|Daily Pivot Point S3||1.1074|
|Daily Pivot Point R1||1.1165|
|Daily Pivot Point R2||1.1192|
|Daily Pivot Point R3||1.1211|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.