EUR/USD Technical Analysis: Critical Long-Term Support Broken

EUR/USD Technical Strategy: SHORT AT 1.1648

  • Euro breaks monthly chart support, paving the way for deeper losses
  • Near-term support just below 1.13, break to clear a path below 1.12
  • Improved risk/reward setup sought to add to EUR/USD short trade

See our Euro forecast to learn what is likely drive prices in the fourth quarter!

The Euro finished October with a break through range top resistance-turned-support bedeviling sellers for five months. In all, the barrier has been a pivotal long-term inflection point since May 2015. Its break portends downtrend acceleration against the US Dollar.

EUR/USD Technical Analysis: Critical Long-Term Support Broken

Turning to more immediate technical positioning, the daily chart shows prices sitting squarely atop support in the 1.1268-96 area. A push below this barrier confirmed on a daily closing basis opens the door for a challenge of the 1.1110-19 zone.

Initial resistance is at 1.1432, marked by the October 9 low. This is reinforced by a falling trend line defining the down move started from the late September high, now at 1.1473. A rebound that takes prices back above the latter threshold paves the

Article source: https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2018/11/01/EURUSD-Technical-Analysis-Critical-Long-Term-Support-Broken.html