Euro Downtrend Intact, Monthly Chart Hints at Steep Drop Ahead

TECHNICAL FORECAST FOR THE EURO: BEARISH

  • Monthly chart setup warns Euro vulnerable to prolonged decline
  • Near-term downtrend intact through bounce from November lows
  • Short EUR/USD position in play, looking for bearish resumption

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October ended with the Euro seemingly set to suffer deeper losses against the US Dollar. A look at the monthly chart reveals prices breached range top resistance-turned-support centered around the 1.15 figure – a pivotal inflection point since May 2015 – to suggest that a move toward a four-year range floor near 1.05 may well be in the cards in the months ahead.

Euro Downtrend Intact, Monthly Chart Hints at Steep Drop Ahead

The bearish bias remains upon examination of more actionable positioning on the daily chart, but the setup is far less immediately actionable than it might seem at first glance. Prices are resting resistance guiding the downswing from the downswing started in late September. It is thus far unclear whether this barrier will hold and bearish is resumption is to

Article source: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2018/11/16/Euro-Downtrend-Intact-Monthly-Chart-Hints-at-Steep-Drop-Ahead.html