EURO : Breakout Fails

(Wed, 11 Nov 2020). Euro snapped a four-day winning streak against the US Dollar yesterday with EUR/USD reversing off technical resistance to fall more than 0.9% off the weekly highs. The losses take price back below trend resistance and threatens the post-election rally in the days ahead. These are the updated targets and invalidation levels that matter on the EUR/USD technical price charts. Review my latest Strategy Webinar for an in-depth breakdown of this Euro setup and more.

Initial daily support now eyed at 1.1761 backed the 61.8% Fibonacci retracement of the November range at 1.1724- a break / close below this threshold would suggest a more significant high was registered this week witch such a scenario exposing 1.1667 and 1.1621.

Notes: A closer look at Euro price action sees EUR/USD trading within the confines of an ascending pitchfork formation extending off the September / November lows. Yesterday’s reversal off lateral resistance at 1.1911 takes price back into median-line support– the weekly opening-range is set and we’re looking for the break to offer guidance. Initial resistance back at 1.1859 with near-term bearish invalidation now set to the weekly open at 1.1890.

Bottom line: Euro is threatening a false breakout here after reversing off the yearly high-day close. From at trading standpoint, the threat remains for a deeper pullback while below the weekly open at 1.1890 – look for topside exhaustion ahead of this threshold IF price is heading lower. Ultimately, a larger correction may offer more favorable opportunities with a breach above 1.1911 needed to mark resumption of the broader uptrend. Review my latest Euro Weekly Price Outlook for an in-depth look at the longer-term EUR/USD technical trade levels.

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