News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Breaking news

OPEC+ Agrees to Stick With Plan to Hike Production, Oil Prices Plunge

EUR/USD Price Forecast: Support Levels Break as New Year Sell-Off Continues

EUR/USD Price Forecast: Support Levels Break as New Year Sell-Off Continues

Nick Cawley, Strategist

EUR/USD Price Forecast, Analysis and Chart:

  • EUR/USD support levels creak then break.
  • EUR/USD back below the 200-dma.

EUR/USD Trades Below 1.1100 for The First Time in Three-Weeks

EUR/USD continues to fade lower in 2020 with the pair briefly breaking below 1.1100 before a mild pullback.

A combination of weak Euro-Zone economic data and a resurgent US dollar weighs on the pair with traders now looking ahead to Friday’s US Labor Report (Non-Farm Payrolls) for further USD guidance.The latest CoT also showed that Euro short positions continued to build, adding further pressure on the single currency.

US Dollar Longs Slashed, GBP/USD Most Bullish Since May 2018 – COT Report

The pair now trade below both the 50- and the 200-dma, a negative sign, and near the 20-dma, currently situated at 1.1092. A break lower would leave the December 20 higher low (1.1066) the next downside target and a comprehensive break of this level would increase negative sentiment for the pair and open the way to the November 29 low print at 1.0981.To the upside, a cluster of dmas and old highs up to 1.1176 may prove difficult for EUR/USD to overcome in the short-term, while the recent five-month high of 1.1240 is likely to remain untested.

EUR/USD Daily Price Chart (June 2019 – January 9, 2020)

EUR/USD Daily Price chart

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on the Euro and the US Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

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

DISCLOSURES