EUR/USD Weekly Technical Outlook: Euro Breakdown Set to Continue

EUR/USD Technical Highlights:

  • Breach of support last week keeps focus lower
  • Firm recapture of support needed to negate bearish bias
  • Trend-line from Dec ’16 and August low could be targeted next week

For the intermediate-term fundamental and technical outlook, check out the DailyFX Q4 EURO Forecast.

The euro broke big support just above 11500 on Wednesday, then spent the remaining two days of the week testing the break. Friday, post NFPs, there was a second attempt into two days to recapture the broken threshold but to no avail.

This sets EUR/USD up for further losses in the week ahead. First up as support is last week’s low at 11463, but buyers are seen as putting up much of a fight there. That will likely be reserved for a more important line of support extending higher since December 2016.

The trend-line runs under the August low and is seen as the first level to potentially give pause to the slide that started last month. Watch price action should we see the trend-line tested next week. If buyers fail to show up in a strong fashion then a break could very well be

Article source: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2018/10/05/EURUSD-Weekly-Technical-Outlook-Euro-Breakdown-Set-to-Continue.html