FX.co ★ EUR/USD Set To Continue Trending South

EUR/USD is expected to extend its downside movement as USDX has managed to erase yesterday's drop. USDX's rally should push the pair towards fresh lows. Better than expected US data later today could boost the greenback.

The US Presidential Election results, along with the US data should bring more action on EUR/USD today. Technically, the pair has validated once again a further drop. Still, you should be careful today because anything could happen.

EUR/USD False Breakout Suggest Selling!

EUR/USD is trading in the red on the H4 chart signaling strong sellers. The false breakout with great separation above the Pivot Point (1.1715), 1.1753, and through the up channel's downside line validates the bearish pressure.

The pair has dropped as much as 1.1601 level today, but it has recovered a little in the last hours. It is traded at the 1.1660 level, so we have to wait for a bearish closure below 1.1611 static support before selling again.

The fundamentals will drive the pair these days, the high impact events could change the sentiment again.

• EUR/USD Trading Conclusion

EUR/USD is trapped between the 1.1753 and 1.1611 levels, a downside valid breakdown suggests selling with a near-term target at the 1.1495 level. On the other hand, an upside breakout from this range brings a long opportunity with a first upside target at the 1.2 psychological level.

So, you should wait for either a bearish closure under 1.1611 or for a bullish closure above 1.1753 before taking action.