EURUSD price analysis:
- EURUSD has been falling since the middle of April last year.
- However, a break to the upside now looks possible.
EURUSD price well placed to rally
EURUSD has been falling steadily since April 17, 2018. However, for the last few sessions the price seems to have been attempting a break above the resistance line joining the lower highs touched since then, and success would likely bring further gains.
EURUSD Price Chart, Daily Timeframe (April 16, 2018 – January 2, 2019)
Chart by IG (You can click on it for a larger image)
This can be seen more clearly in the chart below, which shows how the price has been attempting to break out. So far the move has not been confirmed but a daily close above the trendline, currently at 1.1437, would make a rally more likely.
EURUSD Price Chart, Daily Timeframe (October 3, 2018 – January 2, 2019)
Chart by IG (You can click on it for a larger image)
If that were to happen, the immediate targets would be the 100-day moving average at 1.1460, the November 7, 2018 high at 1.15, the 200 dma at 1.1553 and the October 16, 2018 high at 1.1622.
Meanwhile, to the downside, there is support around the current level from the 50 dma at 1.1372 and from an upward-sloping trendline that checks in close to 1.13. While Wednesday’s steep fall in EURUSD has made an upward break less likely (or provided a better entry point, depending on your point of view), rallies from here should be watched carefully and a weekly close above that trendline resistance would be particularly significant.
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--- Written by Martin Essex, Analyst and Editor
Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex
