EUR/USD Price Analysis: Euro breaches trendline, November low exposed

• EUR/USD has breached a three-month ascending trendline. 
• Daily chart indicators are flashing bearish signals. 
• The higher low of 1.0981 (November's low) could be put to test. 

EUR/USD is back on the defensive after an early-month bout of strength fell flat.

The currency pair reversed higher from 1.0981 at the end of November and rose above 1.12 on the new year day. The break above 1.12, however, was short-lived, as the spot fell to 1.11 on Jan. 10 and formed a lower high at 1.1173 on Jan.16 before falling to a seven-week low of 1.1036 on Thursday. 

More importantly, the pair closed at 1.1051 on Thursday, violating the support of the trendline rising from Oct. 1 and Nov. 29 lows. The breakdown of the trendline support has exposed the higher low of 1.0981 established on Nov. 29. 

Supporting the bearish case is the below-50 reading on the 14-day relative strength index. Further, the MACD histogram is charting deeper bars below the zero line, a sign of strengthening bearish momentum. 

The convincing move above Thursday's high of 1.1109 is needed to invalidate bearish pressures. 

Daily chart

Trend: Bearish

Technical levels