EURUSD CHART ANALYSIS: BEARISH
- EURUSD negates upside breakout, stalls amid choppy price action
- Long-term chart setup continues to argue for a broadly bearish bias
- Immediate resistance at 1.1348, support just below the 1.12 figure
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The Euro bungled a would-be upside breakout against the US Dollar. Prices broke countertrend line support-turned-resistance even seemingly completed a bullish Falling Wedge chart formation, only to turn sharply lower and undo both developments.
The overall bias in near-term positioning now looks inconclusive. The June 7 top at 1.1348 marks immediate resistance, with a close above that opening the door to probe above the 1.14 figure. Support is at 1.1181, the June 18 swing low, followed by the May 23 bottom at 1.1107.
Zooming out to the monthly chart offers a bit of perspective. Prices have been confined to a to a well-defined downtrend for over a decade, with the latest leg in the decline apparently triggered in October with a break of support in the 1.1449-1.1554 area. The next big layer of support beckons in the 1.0459-1.0563 zone.
The space between these barriers has seen over 2 years of choppy trade, so more of the same here now is perhaps not terribly surprising. Still, the dominant trend appears to point convincingly lower, with any gains needing to show substantial progress before looking like anything more than a correction.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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