OctaFX | OctaFX Forex Broker
Open trading account
Back

EUR/USD Price Analysis: Failed breakout on 4H chart

  • EUR/USD's failed breakout has shifted risk in favor of a drop to 1.11. 
  • The key indicator has violated the ascending trendline in favor of the bears.

EUR/USD may face selling pressure with the 4-hour chart reporting a failed breakout. 

The common currency jumped to highs above 1.1160 on Thursday, confirming an upside break of the descending channel from Dec. 31 and Jan. 6 highs. 

The breakout signaled an end of the pullback from 1.1240 and a resumption of the rally from the November low of 1.0981. 

That bullish move, however, did not happen and the pair fell from 1.1174 to 1.1128, invalidating the descending channel breakout. 

A failed breakout is widely considered as a powerful bearish signal. So, a drop to 1.11 or lower cannot be ruled out, more so, as the 4-hour chart RSI has breached the ascending trendline. 

A convincing move above 1.1170 is needed to revive the bullish setup. At press time, EUR/USD is trading 1.1136. 

4-hour chart

Trend: Bearish

Technical levels

 

ECB should not abandon negative interest rates this year – Reuters poll

A Reuters poll recently released puts the euro zone's economic activity bottoming out, noted by 47 of 60 economists. The ECB should not abandon negati
Read more Previous

WTI looks for firm direction above 200-day SMA amid trade optimism, strong USD

WTI buyers catch a breath after registering the largest gains in two weeks. The black gold trades near $58.60 by the press time of Friday’s Asian session.
Read more Next
Start livechat