EUR/USD Technical Analysis: Euro May Bounce, Trend Still Bearish

EUR/USD Technical Strategy: SHORT AT 1.1708

  • Euro counter-trend line break hints down move back in play
  • RSI divergence hints corrective rebound may be in the cards
  • Short trade in play, invalidation on a break above mid-1.18s

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

The Euro broke down against the US Dollar after establishing a top near the 1.18 figure, as expected. A break below support guiding the upswing from mid-September triggered re-entry short EUR/USD at 1.1708. Prices have since stalled near the 1.16 mark, with the emergence of positive RSI divergence hinting at ebbing downside momentum that may precede a bounce.

EUR/USD Technical Analysis: Euro May Bounce, Trend Still Bearish

That need not be so necessarily. RSI divergence can mark a period of consolidation before downtrend resumption. In any case, a look at the daily chart suggests any near-term gains may be little more than a correction in the context of a breach below counter-trend support defining the upswing from mid-August lows. A daily close above the 1.1815-52 area is probably

Article source: https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2018/10/02/EURUSD-Technical-Analysis-Euro-May-Bounce-Trend-Still-Bearish.html