EUR/USD Price Analysis: Bear flag breakdown on D1

EUR/USD's bear flag breakdown has exposed September lows.
The daily chart RSI also favors deeper losses.

Omkar Godbole FXStreet Contributor

The path of least resistance for EUR/USD is to the downside.

The pair fell by over 0.6% on Wednesday, confirming a bear flag breakdown on the daily chart. The breakdown indicates the sell-off from the Sept. 1 high of 1.2011 has resumed. As such, a re-test of the Sept. 25 low of 1.612 looks likely.

Supporting the case for a deeper drop is the below-50 or bearish reading on the 14-day relative strength index. Also, the daily chart MACD histogram is printing deeper bars below the zero line. That's a sign of the strengthening of bearish momentum.

The bearish outlook would be invalidated if the pair finds acceptance above Thursday's high of 1.1758. At press time, the pair is trading largely unchanged on the day near 1.1673.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.1673
Today Daily Change	-0.0002
Today Daily Change %	-0.02
Today daily open	1.1675

Trends
Daily SMA20	1.1774
Daily SMA50	1.1789
Daily SMA100	1.165
Daily SMA200	1.1312

Levels
Previous Daily High	1.1759
Previous Daily Low	1.165
Previous Weekly High	1.1881
Previous Weekly Low	1.1703
Previous Monthly High	1.2011
Previous Monthly Low	1.1612
Daily Fibonacci 38.2%	1.1692
Daily Fibonacci 61.8%	1.1717
Daily Pivot Point S1	1.163
Daily Pivot Point S2	1.1586
Daily Pivot Point S3	1.1522
Daily Pivot Point R1	1.1739
Daily Pivot Point R2	1.1803
Daily Pivot Point R3	1.1847

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.