{"id":2587,"date":"2021-01-18T08:38:38","date_gmt":"2021-01-18T08:38:38","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=2587"},"modified":"2021-01-18T10:49:49","modified_gmt":"2021-01-18T10:49:49","slug":"eurusd-technical-analysis-bearish-pattern-looms","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-bearish-pattern-looms\/","title":{"rendered":"EURUSD Technical Analysis &#8211; Bearish pattern looms"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2587\" class=\"elementor elementor-2587\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b74021f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b74021f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5ac7ff7\" data-id=\"5ac7ff7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3d6a69a elementor-widget elementor-widget-text-editor\" data-id=\"3d6a69a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The <a href=\"http:\/\/bit.ly\/2YAQOVh\" target=\"_blank\" rel=\"noopener\">EURUSD<\/a> pair tumbled lower on the foreign exchange market last week as Italian political drama and safe-haven flows back into the <a href=\"https:\/\/bit.ly\/37m9dMU\" target=\"_blank\" rel=\"noopener\">US dollar<\/a>, after much weaker-than-expected retail sales data from the world\u2019s largest economy.<\/p><p>News that <a href=\"https:\/\/bit.ly\/3eUSCAy\" target=\"_blank\" rel=\"noopener\">Pfizer vaccines<\/a> will be delayed coming to Europe also hit the euro currency and stocks hard last week. The FX market started repricing the euro currency and <a href=\"https:\/\/bit.ly\/37v2hgJ\" target=\"_blank\" rel=\"noopener\">EU stocks<\/a> following the shock announcement.<\/p><p>From a technical perspective the EURUSD pair appears primed for further losses, as a huge head and shoulders pattern is looming across the lower and higher time frames. A number of euro crosses, such as the <a href=\"http:\/\/bit.ly\/2Lg9zs6\" target=\"_blank\" rel=\"noopener\">EURGBP<\/a> and <a href=\"https:\/\/bit.ly\/3gSVgJG\" target=\"_blank\" rel=\"noopener\">EURAUD<\/a> also have the same pattern, which could indicate further weakness in the euro currency ahead.<\/p><p>This week the euro currency has plenty of top-tier economic data points to digest, and also the European Central Bank meeting, which is traditionally a big market mover for the single currency on the foreign exchange market.<\/p><p>The prospect of the ECB taking a dovish stance towards eurozone economy is not hard to imagine as COVID-19 ravages through Europe, and especially since the powerhouse of Europe, Germany, is currently in an extended lockdown.<\/p><p>Cases are also starting to rise across other important European economies, with particularly focus coming back on France, which is another key driver of eurozone economic activity. Dovish commentary from the ECB certainly has the potential to sink the EURUSD lower this week.<\/p><p>Traders also have to contend with ongoing political chaos in Italy. Last week, rising bond yields in Italy drove the decline in the euro currency lower for most of the week.<\/p><p>Another key risk for the euro at the moment is the prospect of more stimulus from the US economy. This could cause investors to move back to US, hence demand for the greenback could start to increase.<\/p><p><strong>EURUSD Short-Term Technical Analysis<\/strong><\/p><p>The four-hour time frame shows that a head and shoulders pattern with substantial downside potential has formed, following the recent price drop towards the 1.2070 support area.<\/p><p>According to the overall size of the bearish price pattern the EURUSD pair could drop by around 300 points if sellers activate the pattern and send price under the key 1.2060 support level.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-70c2d34 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"70c2d34\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9f7cc1a\" data-id=\"9f7cc1a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-88521ec elementor-widget elementor-widget-image\" data-id=\"88521ec\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"624\" height=\"305\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/eurusd-4h-4.png\" class=\"attachment-large size-large wp-image-2590\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5bb1e94 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5bb1e94\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3949a90\" data-id=\"3949a90\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-713dde2 elementor-widget elementor-widget-text-editor\" data-id=\"713dde2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-73697f2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"73697f2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-dd4fbaf\" data-id=\"dd4fbaf\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a851f40 elementor-widget elementor-widget-text-editor\" data-id=\"a851f40\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>In terms of strategy, traders that are bearish towards the EURUSD pair may wait until the price drops under the 1.2060 level or fade any strength back above the 1.2100 level.<\/p><p>Key swing zones for the EURUSD pair above the 1.2100 level are currently located around the 1.2030 and 1.2070 resistance areas.<\/p><p>A sustained move past the 1.2200 level and traders may see stop loss triggered, causing a wave of buy orders back towards 1.2250.<\/p><p><strong>EURUSD Medium-Term Technical Analysis<\/strong><\/p><p>Looking at the daily time, the chart shows plenty of scope for downside potential, as a similar size bearish head and shoulders pattern to the four-hour time frame is also present.<\/p><p>A key technical breakout below a long-term trendline has taken place on the weekly time frame. This could mean that the recent move to 1.2350 was a false breakout. The weekly, and the monthly price close around the trendline will be particularly important.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a8365ce elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a8365ce\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1943aef\" data-id=\"1943aef\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5e8d39d elementor-widget elementor-widget-image\" data-id=\"5e8d39d\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/01\/EURUSD-1W.png\" title=\"\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-33ca31b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"33ca31b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d599bec\" data-id=\"d599bec\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f720b62 elementor-widget elementor-widget-text-editor\" data-id=\"f720b62\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-fdbf101 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fdbf101\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-063a246\" data-id=\"063a246\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-44648bf elementor-widget elementor-widget-text-editor\" data-id=\"44648bf\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>This week, the key trendline in question comes in around 1.2125. This also explains the fierce technical battle around this area last week.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The EURUSD pair tumbled lower on the foreign exchange market last week as Italian political drama and safe-haven flows back into the US dollar, after much weaker-than-expected retail sales data from the world\u2019s largest economy. News that Pfizer vaccines will be delayed coming to Europe also hit the euro currency and stocks hard last week. [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":2588,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,9],"tags":[45,54,39,24,18,82,152,67],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>EURUSD Technical Analysis - Bearish pattern looms - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-bearish-pattern-looms\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EURUSD Technical Analysis - Bearish pattern looms\" \/>\n<meta property=\"og:description\" content=\"The EURUSD pair tumbled lower on the foreign exchange market last week as Italian political drama and safe-haven flows back into the US dollar, after much weaker-than-expected retail sales data from the world\u2019s largest economy. News that Pfizer vaccines will be delayed coming to Europe also hit the euro currency and stocks hard last week. 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He holds a degree in Business and Finance and has an extensive background providing research for prop houses, and fund managers. Nathan previously traded for Drashta Capital, a boutique Hedge Fund based in London and Sydney, and has worked as a FX Market Analyst for a number of leading brokerages in the United Kingdom.\",\"url\":\"https:\/\/youtrading.com\/en\/author\/nathanbatchelor\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"EURUSD Technical Analysis - Bearish pattern looms - Youtrading UK","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/youtrading.com\/en\/eurusd-technical-analysis-bearish-pattern-looms\/","og_locale":"en_GB","og_type":"article","og_title":"EURUSD Technical Analysis - Bearish pattern looms","og_description":"The EURUSD pair tumbled lower on the foreign exchange market last week as Italian political drama and safe-haven flows back into the US dollar, after much weaker-than-expected retail sales data from the world\u2019s largest economy. News that Pfizer vaccines will be delayed coming to Europe also hit the euro currency and stocks hard last week. 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