EUR/USD Technical Analysis: Lots of noise for nothing - First down day in five - EUR/USD bears need to do better than this

  • EUR/USD main bear trend is on hold since mid-August where EUR/USD established a bottom at the 1.1300 figure. 
  • This Friday, EUR/USD bears drove the market down to 1.1630 support after a failed breakout above 1.1700 resistance. This is the first down day in five and EUR/USD bears will need to continue hammering down the market below 1.1530 key support in order to reclaim a strong bearish directional bias.
  • EUR/USD is still trading above its 50, 100 and 200-period simple moving averages while the RSI and Stochastics indicators are trading down from overbought condition. All-in-all suggesting that the market might need to consolidate more before setting up for the next directional move.
  • A bear breakout below 1.1530 would invalidate the bullish bias. 

EUR/USD 4-hour chart 

Spot rate:             1.1639
Relative change:  -0.44%  
High:                    1.1722
Low:                     1.1626

Main trend:                    Bearish
Short-term trend:           Bullish above 1.1530

Resistance 1:   1.1654 August 27 high
Resistance 2:   1.1700 figure
Resistance 3:   1.1750 key resistance (July)
Resistance 4:   1.1800 figure

Support 1:   1.1630 August 8 high key level
Support 2:   1.1600 figure
Support 3:   1.1572 July 19 low
Support 4:   1.1542 supply/demand level
Support 5:   1.1530 August 23 swing low
Support 6:   1.1508 June 8 low

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.