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 Download
EUR/USD
Bullish
GBP/USD
Bearish
USD/JPY
Bearish
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
Gold
Bearish
Oil - US Crude
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
Bitcoin
Bullish
More View more
EUR/USD Price Action Setup: Critical Resistance Prevents Sharp Reversal

EUR/USD Price Action Setup: Critical Resistance Prevents Sharp Reversal

2019-10-15 08:00:00
Justin McQueen, Analyst
Share:

EUR/USD Price Analysis and Talking Points:

  • EUR/USD Fails to Spike Higher
  • ZEW Survey Set for Another Drop

EUR/USD Fails to Spike Higher

Unlike the Pound, the recent gains in the Euro against the US Dollar have more or less been a grind higher as key resistance curbs any sharp appreciation in the pair. Increased optimism that the UK and EU could potentially reach an agreement before October 31st has seen EUR/USD break out of its 4-month downtrend. However, failure to make a break above the September peak at 1.1109 suggests that this recovery in the Euro is a minor correction as opposed to a meaningful reversal. Therefore, an absence of a deal between the UK and EU before the end of the month could see the Euro maintain its broader downtrend.

ZEW Survey Set for Another Drop

On the economic calendar, the latest ZEW Survey will be released in which consensus is for another drop. Throughout September, investor angst had been lifted on the repo rate spike, while weak global PMI data had also heightened recession fears. Consequently, a weaker than expected ZEW Survey is likely to keep the Euro modestly under pressure.

EUR/USD Price Action Setup: Critical Resistance Prevents Sharp Reversal

EUR/USD Price Chart: Daily Time Frame (Jan 19 – Oct 19)

EUR/USD Price Action Setup: Critical Resistance Prevents Sharp Reversal

Resistance 1: 1.1040-45 (23.6% Fib & 50DMA)

Resistance 2: 1.1062 (Last week’s high)

Resistance 3: 1.1109 (September peak)

Support 1: 1.1000 (Psychological)

Support 2: 1.0950

Support 3: 1.0925 (Sep 3rd & 12th bottom)

FX TRADING RESOURCES:

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES

News & Analysis at your fingertips.