EUR/USD getting close to critical uptrend support – bounce

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EUR/USD has an awful 48 hours and there is no mercy at sight. The not-too-dovish FOMC decision, and the very weak European inflation data sent the pair tumbling down.

And now, the pair is approaching a line that consistently provided support for quite a few times. Is this an opportunity to bounce back? A break below this line could turn into an avalanche. Here is how it looks on the chart:

EUR USD Technical chart November 1 2013 uptrend support getting close forex trading

The line was formed in June and worked perfectly well in August as uptrend resistance. The pair eventually broke above this line and it switched from resistance to support.

Several attempts to break back below the line failed during September and October, with the pair eventually shooting higher in a steep channel (also shown on the chart).

After EURUSD couldn’t hold onto the steep uptrend channel, it fell quite quickly.

Further support appears at 1.35, followed by 1.3460 and 1.3415. Resistance is at 1.3570.

For more, see the EUR/USD forecast.

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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.