EUR/USD Has 1.10 in Sight after Trendline Breakout

EUR/USD Has 1.10 in Sight after Trendline Breakout

After hitting a high of 1.1466 last week, EUR/USD has been retreating. Let’s follow up with the pair after it broke a rising¬†trendline.


When we look at the 4H chart we see 3 bullish factors that are broken. We mentioned the rising trendline. Price also fell below the 100-, and 50-period simple moving averages. Lastly, the 4H RSI fell below 40, showing loss of the prevailing bullish momentum.

Now as price approaches 1.1130, we might see a pullback in the near-term, but if the price top is to stay, we should see resistance in the 1.13-1.1325 area.

To the downside a conservative target would be the 1.1065 support pivot. But we should be ready for traders to clear that low to test the 1.10 area, where another rising trendline and the 200-period SMA reside.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at