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Euro Price Action Confirms Bearish Break Lower

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Looking at the euro currency (EUR) on the above daily EUR/USD MT 4 price action chart, the world’s most liquid currency exchange rate has come under renewed pressure as a break lower has been confirmed.

There is not a lot on the economic calendar to spark price action volatility with either the euro currency or U.S. dollar (USD). The Eurozone will release monthly industrial production data. The United States will release monthly headline and core factory gate price data. This is known as the producer price index (PPI).

The United Kingdom has no economic data releases today but Bank of England and Monetary Policy Member Andrew G Haldane will speak. He is the central bank’s chief economist.

Canada has nothing on their economic calendar and heading into the Asian trade session, later today, Japan will release their monthly tertiary activity.

With the lack of economic data being released today, the sensitive linked euro currency will react to ongoing Brexit headlines as well as Covid-19 (coronavirus) news. The United Kingdom and the European Union have failed to close the gap on the free trade agreement ahead of the 15 October deadline.

Daily Euro Currency Technical Analysis (EUR/USD)

Looking at price action, the headline EUR/USD Forex market has started moving south after a Doji candlestick, indicating hesitation, then confirmed bearish candlestick and break lower. The bears have entered the market and this key Forex market is moving lower.

It looks like traders are taking aim at the 25 September low price point lining up at 1.1612. With that said, the first downside barrier lines up at 1.1712 with the net layer of technical support lining up at 1.1680.

On the upside a daily close above 1.1830 is needed for a bullish trend reversal. The first layer of technical resistance is in play at 1.1798 with the next upside barrier in play at 1.1830. In this case the next layer of technical resistance comes into play at 1.1850.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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