EURUSD Technical Analysis: Limited Potential for Downtrend?
Conclusion for today’s EURUSD technical analysis: Price closing above ~1.11099 implies the resumption of bullish momentum.
EURUSD analysis for today is examined on an intraday (6 hour) timeframe using candlesticks. Data captured in the chart covers over 18 months of price action in the EURUSD starting from February of 2018. A dominant downtrend can be observed and is highlighted by a bearish trendline and also the 200 moving average.
Also plotted on the chart is a bearish channel starting from the June 25, 2019 price peak of 1.14122. Evidence of downside momentum slowing down includes lack of continuation after the EURUSD attempted a move below ~1.09288 on September 2, 2019 and again on September 12, 2019.
The 1.09288 price level therefore can be considered as immediate support for the EURUSD and price breaking below implies resumption of bearish momentum. A move below the lower boundary of the bearish channel would also provide additional bias for an increase in bearish strength.
1.11099 is marked on the chart as the price level to watch in the EURUSD because it lies just under the 200 moving average and also indicates a price level that offered support previously (April, May and July 2019) that is now acting as resistance. Hence, a possible change in polarity.
In addition, the upper boundary of the bearish channel intersects the aforementioned 1.11099 price level so that a break above can be considered bullish. Same breakout would also see price close above the 200 moving average and therefore the next challenge can be expected to come in at the long term bearish trendline.
A successful break above the long term trendline argues more in favor of an increase in bullish momentum in the EURUSD and limited downside potential.
EURUSD analysis for today is examined on an intraday (6 hour) timeframe using candlesticks. Data captured in the chart covers over 18 months of price action in the EURUSD starting from February of 2018. A dominant downtrend can be observed and is highlighted by a bearish trendline and also the 200 moving average.
Also plotted on the chart is a bearish channel starting from the June 25, 2019 price peak of 1.14122. Evidence of downside momentum slowing down includes lack of continuation after the EURUSD attempted a move below ~1.09288 on September 2, 2019 and again on September 12, 2019.
The 1.09288 price level therefore can be considered as immediate support for the EURUSD and price breaking below implies resumption of bearish momentum. A move below the lower boundary of the bearish channel would also provide additional bias for an increase in bearish strength.
1.11099 is marked on the chart as the price level to watch in the EURUSD because it lies just under the 200 moving average and also indicates a price level that offered support previously (April, May and July 2019) that is now acting as resistance. Hence, a possible change in polarity.
In addition, the upper boundary of the bearish channel intersects the aforementioned 1.11099 price level so that a break above can be considered bullish. Same breakout would also see price close above the 200 moving average and therefore the next challenge can be expected to come in at the long term bearish trendline.
A successful break above the long term trendline argues more in favor of an increase in bullish momentum in the EURUSD and limited downside potential.
