Euro is down more than 1.2% off the weekly highs with the decline now looking to confirm resumption of the broader downtrend. Price is approaching key support into the yearly lows and the final hope for a near-term recovery in the single currency. These are the updated intraday targets & invalidations levels that matter for EUR/USD.
EUR/USD Daily Price Chart
Technical Outlook: In this week’s Technical Perspective on the EUR/USD[1], we highlighted a rebound off weekly confluence support in the Euro with our focus on a larger recovery in price while above 1.16. The rally failed just above monthly open resistance early in the week with price breaking back below the figure today in U.S. trade.
A proposed pitchfork[2] extending off the yearly lows highlights support at the November lows at 1.1554 with the 2016 high-close just lower at 1.1529- note that price has been unable to close below this range and a daily close here is needed to validate resumption of the broader downtrend targeting the 50% retracement at 1.1448. Daily resistance stands at 1.1727 with a breach above 1.1827 ultimately needed to shift the medium-term focus higher.
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EUR/USD 120min Price Chart
Notes: A closer look at Euro price action sees EUR/USD probing below the 61.8% retracement at 1.1589 with confluence support seen just lower at 1.1554/58- an objective break of the weekly opening-range[5] low has us looking for a late-week low but IF price is going to recover, this is would be the spot to watch.
