Euro Biased Lower But Weekly Chart Shows Warning Sign for Sellers

TECHNICAL FORECAST FOR THE EURO: BEARISH

  • Euro retreats to October bottom but breakout confirmation still pending
  • Weekly chart warns a Head and Shoulders bottom may be taking shape
  • Short position still in play as decade-long bearish trend remains intact

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The Euro is trying to resume the downtrend against the US Dollar after hawkish minutes from September’s FOMC meeting, as expected. Daily chart positioning continues to look somewhat convoluted however. Prices sank back to support marked by the October 9 low at 1.1432 but a breakout is yet to be confirmed.

Euro Biased Lower But Weekly Chart Shows Warning Sign for Sellers

The outlines of a would-be Head Shoulders (HS) bottom on the weekly chart muddy the waters further. Confirmation on a close above neckline resistance at 1.1768 would imply a measured move higher to probe resistance above the 1.22 figure.

Euro Biased Lower But Weekly Chart Shows Warning Sign for Sellers

Still, the

Article source: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2018/10/19/Euro-Biased-Lower-But-Weekly-Chart-Shows-Warning-Sign-for-Sellers.html