EUR/USD Price Analysis: Euro rolling into Asia below the 1.1100 level

 

 

The euro is trading in a weak downtrend below the 200-day simple moving average (SMA). However, the spot is trading in an ascending channel which started in October 2019. The spot is also within a bull flag since late December 2019. EUR/USD created a head-and-shoulders pattern and a break above the right shoulder near 1.1175 and the 200 SMA could be seen as a bullish continuation. However, since the market has been so two-sided in the last months of trading it is more probable that breakouts in either direction will not run very far.  

 

 

As the market is trading below the main SMAs the underlying bias remains bearish. Sellers are looking for a clear breakdown below the 1.1070 support and a potential drop to the 1.1030 level. Resistances are seen near the 1.1098, 1.1121 and 1.1155 levels, according to the Technical Confluences Indicator.