EURUSD Price Analysis: Rebound to Hit Resistance Shortly
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EURUSD – Price, Chart and Technical Analysis
- EURUSD moving off its 14-month low.
- Fibonacci resistance remains a barrier for further upside movement.
The latest IG Client Sentiment Indicator shows how retail are currently positioned in EURUSD - 58% long - and how daily and weekly changes can affect trading decisions.
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EURUSD Heading Back to Fibonacci Resistance
The recent rebound in EURUSD continues to look weak and may struggle to break back above resistance at 1.14480, the 50% retracement of the January 2017 – February 2018 rally. On the daily chart the pair remain technically weak with only the oversold RSI indicator providing any potential bullish momentum. If resistance is broken the upside looks capped around 1.1554 where the November 2017 swing low joins the 20-day moving average.
EURUSD Daily Price Chart (November 2017 – August 16, 2018)
The four-hour EURUSD chart shows the pair currently finding resistance from the 20- and 50-day moving average cloud while thr RSI indicator is near mid-market. The current four-hour candle highlights market indecision and a narrow trading range and may be setting-up a break lower. On the upside a confluence of resistance up to 1.1474.
EURUSD Four-Hour Chart (July 23 – August 16, 2018)
Fundamental overhangs for the Euro this week include the latest round of Brexit discussions in Brussels and Friday’s University of Michigan sentiment reading which is expected to nudge 0.1% higher to 98.0.
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--- Written by Nick Cawley, Analyst
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.