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Euro Up, Downtrend Intact After ECB

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EUR/USD TECHNICAL ANALYSIS: BEARISH

Euro exams September low however in the end good points after ECB stimulus enhanceRally conspicuously falls in need of breaking near-term downward patternTrades could watch for larger affirmation earlier than taking conviction bets

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The Euro seesawed however in the end discovered its means larger even because the ECB reintroduced quantitative easing alongside an rate of interest lower that introduced its goal lending price deeper into unfavorable territory. Imperviousness to usually unfavorable information movement usually speaks to potent underlying energy, however the single foreign money’s advance additionally stopped conspicuously in need of breaking its near-term downtrend.

Costs now stand squarely at resistance guiding them decrease since late June. That barrier is strengthened by former help within the 1.1069-1.1116 space, now appearing as an upside hurdle. Breaking above that on a every day closing foundation would neutralize near-term promoting stress and set the stage for a transfer larger to problem the 1.12 determine. On the draw back, the September three low at 1.0926 marks the decrease certain of a uneven vary.

Each day EURUSD chart created in TradingView

An actionable commerce setup appears to be absent for now. On one hand, taking over the lengthy aspect appears comically unattractive from a threat/reward perspective as EUR/USD pushes squarely into resistance. On the opposite, the absence of a clearly-defined bearish reversal sign warns that betting on bearish resumption is at this level untimely. Merchants could decide to attend and see earlier than committing a method or one other given this backdrop.

EUR/USD TRADING RESOURCES

— Written by Ilya Spivak, Forex Strategist for DailyFX.com

To contact Ilya, use the feedback part beneath or @IlyaSpivak on Twitter

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