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EUR/USD dips below long term uptrend support – confirmation

EUR/USD continues falling relentlessly. The last swing lower already sent the pair below the long term uptrend support line. The drop below the line can be seen in the daily and hourly charts. However, we have already seen a false break in mid-October, and confirmation is needed.

If the pair remains below these levels over the weekend, we could receive the needed confirmation. Here are the charts:

EURUSD Technical Analysis November 4 8 2013 fundamental outlook sentiment currency trading foreign exchangeIt is a small dip below the line on the daily chart. Note that the pair lost the uptrend channel that accompanied it earlier.

On the hourly chart, we see a similar picture:

EUR USD hourly chart November 2013 technical outlook for the broken uptrend support line

This line worked as resistance from June. When the pair broke above the line in September, it turned into very stubborn support.

The last leg down came after the ISM Manufacturing PMI came out better than expected. We haven’t seen too many positive US figures lately.

This contrasts the horrible European data released this week.

In addition, FOMC members seem relatively hawkish, with Bullard playing down the importance of tapering. Is he implying that tapering is coming in December?

For more, see the EURUSD forecast.



Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.