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.
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