EUR/USD Price Analysis: Failed breakout on 4H chart

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.

Omkar Godbole FXStreet Contributor

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.

4-hour chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.1136
Today Daily Change	-0.0002
Today Daily Change %	-0.02
Today daily open	1.1138

Trends
Daily SMA20	1.1142
Daily SMA50	1.1097
Daily SMA100	1.1068
Daily SMA200	1.1138

Levels
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

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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