Looking at the world’s most liquid currency exchange rate has made a bearish trend change on the above daily MT 4 chart as the euro currency (EUR) is now trading below 1.17.
The EUR/USD Forex market, during Tuesday and into today’s the early Asian trade session has fallen from 1.1773 to below 1.1690.
The economic calendar gets busy on Wednesday. The European Union will publish their monthly flash manufacturing and non-manufacturing purchasing managers’ indices (PMI). The Eurozone’s largest economy is also publishing their flash manufacturing and non-manufacturing purchasing managers’ indices (PMI) as will France.
The United Kingdom is also publishing their flash manufacturing and non-manufacturing purchasing managers’ indices (PMI) as will the United States. The United States is also releasing weekly crude oil inventory levels and monthly housing price index (HPI) data.
Looking at the above daily MT 4 price chart, the euro currency, on Tuesday, closed below the key downside, now technical upside barrier in play at 1.1770. This confirmed a head and shoulders breakdown and a possible bearish trend chain as the euro continues to show weakness towards the overall strength of the U.S. dollar (USD).
Daily Euro Currency Technical Analysis (EUR/USD)
The next large target that Forex traders should watch lines up at 1.1530. With that said the EUR/USD trend change is supported by descending short term five and ten (5, 10) day simple moving averages (SMA) as well as relative strength index (RSI) that is now trending below the mid-line, which is at fifty (50).
The first layer of technical support lines up at 1.1675 with the next downside barrier lining up at 1.1640. Below this downside barrier the technical layer of support in play at 1.1593 then comes into focus.
On the upside, the first layer of technical resistance is in play at 1.1758. A daily close above key upside barrier in play at 1.1770 is needed for a trend reversal. This would bring 1.1808 into focus with the next upside barrier at 1.1840 then coming into play.