Technical Analysis

EUR/USD On The Way Down


The currency pair has opened with a gap down in the morning, signaling that the bears are in control on the short term. Price has come higher to close the morning gap, but has failed. EUR/USD is trading in the red right now and seems too heavy to be stopped.

Price erased the morning gains and could hit fresh new lows till the end of the day as the dollar index could breakout above the 92.49 static resistance. The dollar index moves somehow sideways on the short term, signaling a potential reversal. The behavior changed on the USDX as the rate has started to make higher lows, but we still need a confirmation that the index will really start a broader rebound, which will lead the USD much higher versus all its rivals. The Euro dropped further also because the German Ifo Business Climate decreased from 115.9 to 115.2 points, even if the estimate 116.0 points.

The price failed to close above the upper median line (uml) of the minor descending pitchfork and above the UML and now is going down again. Price also failed to retest the upper median line (uml) in the last attempt, so the bearish movement is natural.

It could be attracted by the confluence area formed between the median line (ml) with the ML of the ascending pitchfork. EUR/USD is narrowing right now, but I hope that we'll have a significant move very soon.

Author: MultiBank Exchange Group Website:
MultiBank Exchange Group
Multibank Exchange Group (MEX Group) is a multinational financial derivatives dealer. Established in California in 2005, MEX has offices in several countries around the world, including the US, the UK, Australia and China. Mex Group is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, the Ras al Khaimah Free Trade Zone (RAK) in the United Arab Emirates and the Financial Services Commission (FSC) in the British Virgin Islands.
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