1.0800 final line of support: EUR/USD analysis
EUR/USD analysis shows that the downside in the pair is starting to accelerate after the recent breakout under the 1.0880 level. Bulls need to quickly anchor the pair back above the 1.0940 level to avoid further losses.
The EUR/USD fell to its lowest level in more than two years last week, following a confirmed technical breakout below the 1.0880 level.
EUR/USD analysis shows that the downside in the pair could accelerate if buyers fail to defend the critical 1.0800 support level.
EUR/USD medium-term price trend
With German growth data showing few signs of picking-up and US economic data remaining strong the EUR/USD pair finally broke key medium-term technical support last week.
The breach of the critical 1.0880 support level provoked a barrage of fresh technical selling towards the EUR/USD pair.
EUR/USD technical analysis over the medium term shows that the 1.0800 level is the final line of defence for EUR/USD pair.
The 1.0800 level marks the bottom of a falling wedge pattern which has been the central focus of medium-term traders since early 2019.
A loss of the 1.0800 level could cause the EUR/USD pair to decline towards the 1.0750 level and possibly the 1.0680 level.
If the EUR/USD pair can bounce from this key technical region, a daily price close back about the 1.0980 level will be needed to confirm that medium-term bottom is finally in place.
EUR/USD short-term price trend
EUR/USD technical analysis shows that the pair has a negative short-term bias while trading under the 1.0940 level.
Short-term traders really have few reasons to be bullish towards the EUR/USD pair while price trades beneath this key area.
EUR to USD analysis indicates that a rebound is possible, as substantial amounts of bearish MACD price divergence have been created during the recent drop.
Short-term traders now need to perform a series of four-hour price closes back above the 1.0940 level to confirm that a stronger recovery may be about to take hold.
The 1.0880 level is also important in the short term, with traders becoming extremely cautious while price trades under this key technical area.
EUR/USD technical summary
EUR to USD analysis shows that the pair is vulnerable to further technical selling while the price trades below the 1.0880 level. The 1.0800 level is the next key downside level to watch.