EUR/USD Technical Analysis: Down Trend Resumption Hinted
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EUR/USD Technical Analysis: Down Trend Resumption Hinted

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Talking Points:

  • EUR/USD Technical Strategy: Pending short at 1.0810
  • Euro breaks counter-trend line, hinting at long-term decline resumption
  • Recovery above 1.08 sought to alight risk/reward setup for short trade

The Euro looks to be resuming its ten-month down trend against the US Dollar having marked a top with the formation of a bearish Dark Cloud Cover candlestick pattern. A break of the series of higher highs and lows set from early March appears to mark confirmation of reversal.

A daily close below support-turned-resistance 1.0682 opens the door for a challenge of the February 22 low at 1.0682. Alternatively, a breach above 1.0874 (trend line, former support) sees the next upside barrier at 1.0966, a level that has acted as a sticking point for prices since late June 2016.

Prices are too close to immediate support to justify entering short from a risk/reward perspective. With that in mind, an entry order has been established to sell the pair at 1.0810. If activated, the position will initially target 1.0682 and carry a stop-loss to be triggered on a daily close above 1.0874.

What to retail traders' buy/sell decisions imply about the Euro trend ? Find out here !

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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