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EUR/USD Price Analysis: Flashing red, descending trendline is still intact

  • EUR/USD rose sharply on Friday, neutralizing the immediate bearish setup. 
  • The pair is yet to clear a key descending trendline hurdle. 
  • A violation of the trendline is needed to confirm a bullish reversal. 

EUR/USD is currently trading at 1.1080, representing a 0.13% drop on the day. 

The single currency ran into offers near 1.11 earlier today. That level is housing the resistance of the trendline connecting Dec. 31 and Jan. 16 highs. 

While Friday's rise from 1.1017 to 1.1095 has invalidated the immediate bearish setup, a close above the descending trendline hurdle is needed to put the bulls back into the driver's seat. 

A bullish close, if confirmed, would open up upside toward 1.1173 (Jan. 16 high).  However, if the trendline hurdle continues to cap the upside for the next day or two,
the sellers will likely feel emboldened and push the pair below the Jan.29 low of 1.0992.

Daily chart

Trend: Neutral

Technical levels

 

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