As part of my weekly chart review for the Society of Technical Analysts, I’ve been analysing the euro versus the US dollar—and the signals are compelling.
EUR/USD is failing at the top of a 3-year channel
Weekly RSI is diverging, hinting at waning upside momentum
Monthly chart shows resistance near the 200-month MA at 1.1981
But is this a euro story or a dollar one?
We’ve applied Dow Theory—“all averages should confirm”—and looked across USD majors and euro crosses. While USD/JPY and USD/CAD show signs of basing, USD/CHF remains in a downtrend. Meanwhile, EUR/GBP and EUR/JPY are nearing major resistance levels.
Conclusion: It’s a bit of both. The weight of evidence suggests a significant turn in EUR/USD may be underway.
📚 Want to deepen your understanding of Dow Theory and technical analysis? The STA Diploma Part 1 course begins this October. Learn more: www.technicalanalyst.com/education
#TechnicalAnalysis #DowTheory #EURUSD #Forex #TradingEducation #STA #RSI #ChartPatterns
Huge improvement – thanks!