Euro Technical Price Outlook: EUR/USD Weekly Trade Levels
- Euro updated technical trade levels & sentiment – Weekly Chart
- EUR/USD rebound off key support approaching yearly downtrend- risk for price inflection
- Weekly support 9800, 9700, 9548/95 (key); Resistance 99, 1.0000 (key), 1.0200
Euro rallied more than 2.7% off the monthly low against the US Dollar with EUR/USD now approaching yearly downtrend resistance. The focus is on a reaction into this key zone in the days ahead with major Eurozone & US event risk on tap this week. These are the updated targets and invalidation levels that matter on the EUR/USD weekly price chart. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Euro technical setup and more.
Euro Price Chart – EUR/USD Weekly
Chart Prepared by Michael Boutros, Technical Strategist; EUR/USD on Tradingview
Notes: In last month’s Euro Weekly Price Forecast I noted that EUR/USD was, “testing confluent support at 9548/95 into the close of the month / quarter – respect the weekly close. From at trading standpoint, a good zone to reduce portions of short-exposure / lower protective stops – rallies should be limited by parity IF price is heading lower on this stretch with a close below needed to fuel the next leg of the downtrend.” Euro registered a low at 9535 that week before reversing sharply higher with EUR/USD rallying more than 4.8% for a test of Parity.
The October opening-range is preserved heading into the final week with Euro trading just below yearly channel resistance- looking for possible price inflection here into confluence resistance at the 99-handle with a breach / weekly close above parity still needed to suggest a more significant low was registered last month. Initial support rests with the yearly low-week close at 9800 with a break below last week’s low needed to fuel another run on 9548/95- weakness beyond this threshold would threaten resumption of the broader downtrend towards 9332.
Bottom line: The Euro recovery is testing confluent resistance at the yearly downtrend- looking for a reaction here. From at trading standpoint, a good zone to reduce portions of long-exposure / raise protective stops – losses should be limited to 9700 IF price is heading higher on this stretch with a close above parity needed to clear the way for a larger recovery. Keep in mind the European Central Bank (ECB) interest rate decision and key US inflation data (Core PCE) is on tap this week- expect volatility and stay nimble here. I’ll publish an updated Euro Short-term Price Outlook once we get further clarity on the near-term EUR/USD technical trade levels.
For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy
Euro Trader Sentiment – EUR/USD Price Chart
- A summary of IG Client Sentiment shows traders are net-long EUR/USD - the ratio stands at +1.12 (52.79% of traders are long) – typically a neu reading
- Long positions are 9.40% higher than yesterday and 10.71% lower from last week
- Short positions are 10.56% higher than yesterday and 13.78% higher from last week
- We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EUR/USD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. From a sentiment standpoint, the recent changes in positioning warn that the current EUR/USD price trend may soon reverse higher despite the fact traders remain net-long.
| Change in | Longs | Shorts | OI |
| Daily | -14% | 9% | -4% |
| Weekly | -23% | 33% | -4% |
Eurozone / US Economic Calendar
Economic Calendar - latest economic developments and upcoming event risk.
Previous Weekly Technical Charts
- US Dollar Index (DXY)
- Japanese Yen (USD/JPY)
- British Pound (GBP/USD)
- Canadian Dollar (USD/CAD)
- Gold (XAU/USD)
- S&P 500, Nasdaq & Dow
--- Written by Michael Boutros, Technical Strategist with DailyFX
Follow Michael on Twitter @MBForex
