Sumary of Euro Technical Analysis: Next Leg Lower Beginning? Setups for EUR/GBP, EUR/JPY, EUR/USD:
- A false bullish breakout may have transpired in EUR/USD rates, while both EUR/GBP and EUR/JPY rates have already started to push towards their monthly low.
- While EUR/USD rates experienced a bullish breakout earlier this week, there is growing evidence that the move is set to reverse.
- Coupled with a failure by EUR/GBP rates to advance meaningfully and EUR/JPY rates falling to fresh monthly lows, it may be the case that EUR/USD strength has masked problems elsewhere.
- EUR/USD RATE TECHNICAL ANALYSIS: DAILY CHART (January 2021 to January 2022) (CHART 1)EUR/USD rates broke out higher from their two month-long triangle earlier this week, but did not advance meaningfully before resistance was met in a number of forms: the descending trendline from the May and September 2021 swing highs;
- A move back below 1.1380 would offer a strong confirmation signal that EUR/USD’s bullish breakout as failed.