EUR/USD technical analysis: Monthly ascending trendline breached

• EUR/USD has breached trendline rising from the Oct. 1 low. 
• The breakdown is backed by the bearish cross of key moving averages. 

EUR/USD is looking south, having breached key diagonal and horizontal support levels on Friday.

The pair closed at 1.1079 on Friday, confirming a downside break of the ascending trendline connecting Oct. 1 and Oct. 15 lows. The pair has also violated support at 1.1110 (Sept. 13 low).

The breakdown of the crucial support level is backed by a bearish crossover of the 5- and 10-day moving averages and lower highs on the MACD histogram – a sign of weakening of bullish momentum.

The spot, therefore, looks set to test 1.1065 (38.2% Fib R of 1.0879/1.1179). As of writing, the pair is trading at 1.1079.

The bearish case would be invalidated if the spot finds acceptance above the former support-turned-resistance of 1.1110.

Daily chart

Trend: Bearish

Technical levels