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.

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
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
EUR/USD Signals A Possible Bullish Comeback, Euro vs USD Price Outlook

EUR/USD Signals A Possible Bullish Comeback, Euro vs USD Price Outlook

Mahmoud Alkudsi, Analyst

EUR/USD Technical Analysis

  • EUR vs USD pauses uptrend move
  • Signals and thresholds to keep in focus

EUR/USD – Bulls Still in charge

On Friday, Euro Fell against the greenback to 1.1055. The price rallied after and settled above 1.1100 handle, then closed the weekly candlestick in the red with 1.6% loss.

That said, the Relative Strength Index (RSI) remained above 50 indicating that uptrend move was still intact.

EUR/USD Daily Price CHART (JULY 1, 2018 – Mar 16, 2020) Zoomed Out

Please add a description for the image.
Building Confidence in Trading
Building Confidence in Trading
Recommended by Mahmoud Alkudsi
Building Confidence in Trading
Get My Guide

EUR/USD Daily Price CHART (Sep 25 – Mar 16, 2020) Zoomed in

Please add a description for the image.

Looking at the daily chart, we noticed that at the start of last week, EUR/USD opened with a runaway gap to the upside highlighting unfinished uptrend move. On Wednesday, the market declined to current trading zone 1.1087 – 1.1300. Later on, the price have failed twice to fall further, signaling a possible bull’s comeback.

Hence, a close above the high end of the zone could push EURUSD towards 1.1640. Further close above that level may send the pair even higher towards 1.1876. In that scenario, special attention should be paid to the daily and weekly resistance levels underlined on the chart (zoomed in) as some traders may exit/join the market around these points.

In turn, any close below the low end reflects bull’s reluctance. This might lead some of them to exit the market allowing the price tow fall eyeing a test of 1.0912. Further close below this level could mean more bearishness towards1.0825. Nevertheless, the weekly support levels printed on the chart should be considered.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Mahmoud Alkudsi
Traits of Successful Traders
Get My Guide

EUR/USD four Hour Price CHART (Jan 29 – Mar 16 2020)

Please add a description for the image.

From the four-hour chart, we noticed that on Monday uptrend move led EUR/USD to 1.1496 – its highest level in over thirteen months. In the following days, the price reversed its move creating lower highs with lower lows.

Thus, a break below 1.1050 could lead EURUSD towards 1.0959. Yet, the weekly support level underscored on the chart should be kept in focus. On the other hand, any break above 1.1371 might cause a rally towards 1.1553. Although, the daily resistance level printed on the chart should be watched closely.

See the chart to know more about key technical levels in a further bullish/bearish scenario.

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Mahmoud Alkudsi
Improve your trading with IG Client Sentiment Data
Get My Guide

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

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

DISCLOSURES