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
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
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Gold: 0.01% Silver: -0.22% Oil - US Crude: -0.93% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/cZeVIxiAJm
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.32%, while traders in NZD/USD are at opposite extremes with 75.03%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fmCBX0W0w3
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Gold: 0.07% Silver: -0.21% Oil - US Crude: -0.93% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/MBlfthkrSp
  • Heads Up:🇲🇽 Monetary Policy Meeting Minutes due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-11-26
  • What are some key influences Black Friday has on the economy and stock markets? Find out: https://t.co/KIsvaIWZDN https://t.co/NS7o4MrEok
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.06% US 500: 0.04% Wall Street: 0.01% France 40: -0.03% FTSE 100: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/zTLPlL868T
  • 🇨🇦 Average Weekly Earnings YoY (SEP) Actual: 6.9% Previous: 7.9% https://www.dailyfx.com/economic-calendar#2020-11-26
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.45%, while traders in NZD/USD are at opposite extremes with 74.75%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rb0KHIpnDO
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.22% 🇨🇦CAD: 0.04% 🇨🇭CHF: -0.02% 🇳🇿NZD: -0.11% 🇪🇺EUR: -0.11% 🇬🇧GBP: -0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/LZMBGAenik
  • Heads Up:🇨🇦 Average Weekly Earnings YoY (SEP) due at 13:30 GMT (15min) Previous: 7.9% https://www.dailyfx.com/economic-calendar#2020-11-26
Euro Dollar Forecast: EUR/USD Tests Trendline Resistance

Euro Dollar Forecast: EUR/USD Tests Trendline Resistance

2020-10-19 18:04:00
Tammy Da Costa, Markets Writer
Share:

EUR/USD Outlook

Visit the DailyFX Educational Center to discover why news events are Key to Forex Fundamental Analysis

Renewed Hopes for US Stimulus Weighs on Dollar Strength

The need for additional Fiscal stimulus in the US is becoming a matter of urgency as the second wave of the Coronavirus pandemic, combined with an increase in the number of initial jobless claims, continues to weigh on investor sentiment. After hopes of additional support faded last week, optimism resurfaced after House Speaker Nancy Pelosi announced her intentions to reach an agreement with Treasury Secretary Steven Mnuchin within the next 48 hours, should an agreement be possible before the US presidential election on 3 November, which is likely to be an additional driver for price action.

Advertisement

Meanwhile, the staggering number of new Covid-19 related cases, has resulted in the reimplementation of lockdown restrictions throughout Europe, in an effort to curb the spread of the virus, creating a new threat to business activity and overall economic recovery. An additional variance of concern, is the Brexit deadline which is fast approaching, with diminishing hopes that a deal will be reached between Europe and the United Kingdom.

EUR/USD Honors Key Fibonacci Levels

After recovering from March 2020 lows, price action favored the bulls, until reaching a wall of resistance on 1 September at the psychological level of 1.2000, where bears exerted downward pressure, breaking below 1.1700, the 38.2% Fibonacci retracement (between Jan 2017 low and Feb 2018 high), which now remains as support, while the trendline has provided additional resistance for the major currency pair.

Starts in:
Live now:
Nov 26
( 16:11 GMT )
James Stanley’s Price Action Webinar
Trader's Toolbox: How to Identify Price Trends with Trader Sentiment
Register for webinar
Join now
Webinar has ended

EUR/USD Daily Chart

EURUSD Daily Price Chart

Chart prepared by Tammy Da Costa, IG

MACD Crosses Below Zero

From a short-term perspective, the four-hour chart now highlights prices trading above the 50-period Moving Average (MA), while the Moving Average Convergence/Divergence (MACD) has crossed below the zero line, possible indication that the uptrend may continue, at least for the short-term.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Tammy Da Costa
How can news impact your trades?
Get My Guide

EUR/USD 4 Hour Chart

EURUSD Four Hour Price Chart

Chart prepared by Tammy Da Costa, IG

EUR/USD Strategy Ahead

Currently, the psychological level of 1.8 continues to hold s resistance with a break above, leading to the 61.8% retracement of the short-term move becoming a level of interest.

On the contrary, break below 1.176 (the 38.2% Fibonacci of the short-term move), my see downward pressure exerted until the 23.6% retracement level comes into play at 1.17061.

--- Written by Tammy Da Costa, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

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

DISCLOSURES