Euro[1] is trading into fresh yearly lows today with price now testing key near-term support objectives. Here are the updated targets and invalidation levels that matter on the EUR/USD[2] charts. Review this week’s Strategy Webinar[3] for an in-depth breakdown of this setup and more.
EUR/USD Daily Price Chart
Technical Outlook: In my Weekly Technical Perspective on Euro[4] we noted that EUR/USD was, “testing a make-or-break level” early in the month with a close below 1.16 to risk substantial losses. Price is down more than 3% month-to-date with the pair responding to slope today in US Trade. We’re on the lookout for possible exhaustion at these levels with the broader short-bias vulnerable near-term while above 1.13.
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EUR/USD 240min Price Chart
Notes: A closer look at crude price action further sees Euro posting a 4-hour outside-reversal bar off confluence support at 1.1312 where the July 17th swing low converges on slope support extending off the May lows. Long-term structural support rests just lower around~1.1274–price is vulnerable for a near-term recovery off one of these levels.
Interim resistance stands at 1.1366 with near-term bearish invalidation now lowered to 1.1448- a breach above this level would be needed to suggest a more significant low is in place. A downside break sub-1.1274 keep the focus on the key 1.1164/86 support target – a region defined by the 61.8% Fibonacci[6] retracement of the 2017 advance and the measured move of the June /
