EUR/USD got close to the long term downtrend resistance after the Greek deal was announced, but as the details remained unconvincing, the pair retreated. However, it didn’t retreat too far, making this line very relevant. In the next possible encounter, will it continue falling or break down once again?
EUR USD Long Term Donwtrend Resistance Daily – Click image to enlarge
The line dates back from 2011, when euro/dollar peaked at 1.4940. It worked very nicely since then.
EUR/USD dropped after a false break above the 1.30 line. It led to fall that sent the pair as low as 1.2912 before some “dead cat bounce”. The shallow bounce could indicate more falls.
Here is another look at this line, this time on the weekly chart:
EUR USD Long Term Donwtrend Resistance Weekly – Click image to enlarge
Where next for EUR/USD?
For more, see the euro to usd forecast.