Bearishness in EURUSD continues, in this weekly chart price bounced off the 1.1490-1510 area and has now moved toward the uptrend line marked on the chart.

If the trendline breaks we may move lower toward the 1.10 level.

The trendline level could be used as support.

The downtrend which started at the beginning of 2018 is still intact.

1.13 has looked sticky in the past and looked like a base formation but if it breaks the lower low, lower high sequence continues.

1.1186 is the 61.8 Fib retracement level.

EURUSD seems to be oversold and the repricing of the rate hiking cycle by the Fed did point to USD weakness. The Gov. shutdown does not seem to have affected the USD as much as expected but Europe has its own issues with Italian and French budgetary concerns as well as Macron policy discontent in France. Stock markets have moved back to being risk on and the US-China trade deal could unwind some of the USD strength. Having said that its still a pretty bearish looking chart, keep an eye on the trendline and the consolidation low of 1.1216 for clues.

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