EURUSD bearish – Rising channel breakdown points lower
EURUSD slumped from the 1.1488/1.1494 tweezer top (October 14/15, 2015 highs) to break below 7-month rising channel support (as shown on the daily chart), signaling an end to the 7-month consolidation since the pair reached the 1.0419 YTD low (March 13, 2015). Further weakness open the 1.0807 support (July 20, 2015 low). Below there would accelerate the decline towards 1.0519 (April 13, 2015 low) then possibly 1.0461. The channel breakdown projection is at 1.0214.
The 1.1139 resistance area (October 23, 2015 high) should cap any bounces. However, if bulls manage to push above 1.1139, it would offer relief and scope for a return to the 1.1235 tough resistance area.
Outlook:
Intraday: bearish
Daily: bearish
Weekly: bearish
EURUSD slumped from the 1.1488/1.1494 tweezer top (October 14/15, 2015 highs) to break below 7-month rising channel support (as shown on the daily chart), signaling an end to the 7-month consolidation since the pair reached the 1.0419 YTD low (March 13, 2015). Further weakness open the 1.0807 support (July 20, 2015 low). Below there would accelerate the decline towards 1.0519 (April 13, 2015 low) then possibly 1.0461. The channel breakdown projection is at 1.0214.
The 1.1139 resistance area (October 23, 2015 high) should cap any bounces. However, if bulls manage to push above 1.1139, it would offer relief and scope for a return to the 1.1235 tough resistance area.
Outlook:
Intraday: bearish
Daily: bearish
Weekly: bearish