Technical analysis of EUR/USD for August 23, 2018

EUR/USD has broken above 1.16 yesterday giving hopes for a bigger reversal to the upside and a long-term low, but the price got rejected and pulled back below 1.16. We are now at key resistance area and a rejection here will imply that EUR/USD is going to see new 2018 lows.

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Red lines - resistance trend lines

Black line - support

EUR/USD managed to push above the red downward sloping trend line coming from 1.24 but did not manage to close above it. The price has retaken the 1.15 level and this is a positive sign. However, as long as the price is below both red trend lines, we remain bearish looking for a move below 1.13. A break below 1.15 will increase the chances of this happening. If EUR/USD manages to break above 1.1650-1.1630 area we will turn neutral and slightly bullish EUR/USD.

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