Euro Nears 1.1425 Breakdown as Bearish Reversal Pattern Targets 1.0800
Updated
Updated · Reuters · Jun 5
Euro Nears 1.1425 Breakdown as Bearish Reversal Pattern Targets 1.0800
3 articles · Updated · Reuters · Jun 5
Summary
The euro is nearing a key technical test at 1.1425, where a monthly close below that level would confirm a head-and-shoulders top and signal a shift into a lower trading range.
January’s 4-1/2-year high has already given way to a downtrend driven by energy shocks, Iran war-related safe-haven demand for the dollar, and weaker European economic performance versus the United States.
Monthly RSI failed to confirm the January peak, a classic divergence that points to fading buying momentum, while 15-month Bollinger Bands are contracting after expanding during the euro’s rise.
A confirmed break could open the way toward 1.0800-1.0900, while a rebound above 1.1850-1.1900 would invalidate the bearish pattern and suggest renewed stability or gains.