We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bearish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
Euro Technical Price Outlook: EUR/USD Near-term Breakout Imminent

Euro Technical Price Outlook: EUR/USD Near-term Breakout Imminent

2019-08-08 19:00:00
Michael Boutros, Technical Strategist
Share:

Euro has rallied more than 2% against the US Dollar from the yearly lows registered last week with the advance now consolidating just below down-trend resistance. These are the updated targets and invalidation levels that matter on the EUR/USD charts heading into the close of the week. Review this week's Strategy Webinar for an in-depth breakdown of this oil price setup and more.

New to Forex Trading? Get started with this Free Beginners Guide

Euro Price Chart – EUR/USD Daily

Euro Price Chart - EUR/USD Daily - Euro vs US Dollar Technical Outlook

Chart Prepared by Michael Boutros, Technical Strategist; EUR/USD on Tradingview

Technical Outlook: In my latest EUR/USD Price Outlook we highlighted this descending pitchfork formation extending off the yearly highs – a break below the median-line saw a test of the lower parallel last week with the subsequent rally now testing downtrend slope resistance at the 75% parallel. Price has been in consolidation for the past few days just below this threshold and we’re looking for the break for guidance.

A topside breach targets the 61.8% retracement at 1.1265 backed by the upper parallel / 1.13 – a close above this threshold is needed to suggest a larger price reversal is underway targeting 1.1347/62. Initial support rests at 1.1186 backed by the median-line / 1.1107- Key support at the yearly low-day close at 1.1075 – weakness beyond this point would mark resumption of the broader downtrend.

Euro Price Chart – EUR/USD 120min

Euro Price Chart - EUR/USD 120min - Euro vs US Dollar Technical Outlook

Chart Prepared by Michael Boutros, Technical Strategist; EUR/USD on Tradingview

Notes: A closer look at EUR/USD price action shows Euro in a narrowing range just below the upper parallel heading into the close on Thursday- look for a break of this range. A downside break below 1.1165 would expose a larger decline towards 1.1138 and the weekly open / 61.8% retracement 1.1106/12 – both areas of interest for possible exhaustion / long-entries IF reached.

Learn how to Trade with Confidence in our Free Trading Guide

Bottom line: Euro is testing downtrend resistance - From a trading standpoint, the immediate focus is on a breakout of this near-term consolidation for guidance. That said, for now the idea is to favor fading weakness on a pullback while above the weekly open (1.1106) with a breach of the high needed to fuel the next leg in price. It’s do-or-die for Euro from here though- failure at these levels could see a large-scale move lower, watch the close on Friday. Review my latest Euro Weekly Price Outlook for a longer-term look at the technical picture for EUR/USD.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Euro Trader Sentiment

Euro Trader Sentiment - EUR/USD Price Chart
  • A summary of IG Client Sentiment shows traders are net-long EUR/USD - the ratio stands at +1.19 (54.4% of traders are long) – neutral reading
  • Traders have remained net-long since July 1st; price has moved 1.4% lower since then
  • Long positions are 7.2% lower than yesterday and 37.7% lower from last week
  • Short positions are 5.3% lower than yesterday and 48.7% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Euro prices may continue to fall. Yet traders are less net-long than yesterday & 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.

See how shifts in EUR/USD retail positioning are impacting trend- Learn more about sentiment!

---

Active Trade Setups

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.