EUR/USD technical analysis: breaking important support levels

EUR/USD is starting to trade below a couple of major thresholds, outlook turning increasingly bearish.

EUR/USD Technical Outlook

  • EUR/USD below March trend line
  • Price also below the September high
  • Outlook turning increasingly bearish

The EUR/USD is currently trading below the trend line running higher since March that passes under the November low. In confluence with this trend line is the September high at $1.2011, making the current break a potentially important one. A little more separation is needed, i.e. a strong daily close below $1.2011.

At the time of this writing the price is under, but not in a really convincing manner. That could be about to change. In the event we see a strong push under confluent support, the next area of support arrives around the $1.1920/$1.1885 area, where both price and a channel line run into one another.

Tactically speaking, a solid close below support clears a bearish trading bias down to support where a bounce may offer another potential entry for those seeking to trade a breakdown followed by a pullback entry point. With major support broken, an eventual move to the 200-day could be in order. It is currently at $1.1683 and rising.

From the standpoint of a bullish trading outlook. If the breakdown were to be rejected at confluent support either today or very soon, then a good line in the sand may offer solid risk/reward for those looking for trend resumption from the March low. The next spot to watch should broader support fail will be the $1.1920/$1.1885 area.

Find out more about forex trading

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.