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
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.04% 🇪🇺EUR: -0.05% 🇳🇿NZD: -0.06% 🇨🇭CHF: -0.16% 🇦🇺AUD: -0.17% 🇬🇧GBP: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/KALLAob78W
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/S9CEcBm5Qe https://t.co/PczDJYzd8I
  • Heads Up:💶 ECB President Lagarde Speech due at 07:20 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-30
  • #Nasdaq100 Reacts to Key Resistance as Market Awaits Fiscal Stimulus $NQ $NDQ https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/09/30/Nasdaq-100-Reacts-to-Key-Resistance-as-Market-Awaits-Fiscal-Stimulus.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr https://t.co/4cKKQ069Wh
  • 🇨🇭 KOF Leading Indicators (SEP) Actual: 113.8 Expected: 106 Previous: 110.2 https://www.dailyfx.com/economic-calendar#2020-09-30
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.51% US 500: -0.57% Germany 30: -0.63% Wall Street: -0.64% France 40: -0.77% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/naM5tGUnsq
  • 🇫🇷 Inflation Rate YoY Prel (SEP) Actual: 0.1% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2020-09-30
  • Heads Up:🇨🇭 KOF Leading Indicators (SEP) due at 07:00 GMT (15min) Expected: 106 Previous: 110.2 https://www.dailyfx.com/economic-calendar#2020-09-30
  • IG Client Sentiment indicates that gold traders are heavily leaning towards the long side, with 80% of positions net long, while 20% net short. Retail traders added short (+12%) exposure while trimming long (-3%) positions from a day ago. https://www.dailyfx.com/forex/market_alert/2020/09/30/Gold-Silver-Price-Analysis-Weighed-by-Stronger-US-Dollar-Post-Debate.html https://t.co/QenBWVHLzF
  • Heads Up:🇫🇷 Inflation Rate YoY Prel (SEP) due at 06:45 GMT (15min) Previous: 0.2% https://www.dailyfx.com/economic-calendar#2020-09-30
EURUSD Weekly Technical Analysis: Euro Setting Up for a Bounce

EURUSD Weekly Technical Analysis: Euro Setting Up for a Bounce

2017-10-06 21:28:00
Paul Robinson, Strategist
Share:

What’s inside:

  • EURUSD found buyers around support following the U.S. jobs report on Friday
  • Bullish price sequence under development on the 4-hr time-frame
  • Top-side target on a rally arrives in the 11825/80 zone

For a longer-term outlook on EURUSD, check out the just released Q4 Forecast.

The outlook for last week started with the bottom line stated as such: “Shorts look set to have the upperhand as a fresh month gets underway as long as the euro remains capped by resistance. On weakness, we’ll be watching how the euro responds to a drop into support levels.” Indeed, we saw weakness for much of the week, but looking ahead to next week the script is poised to flip. The euro didn’t push deep into the 11664/16 support zone we were watching, but it did traverse close enough to call it a test – especially when looking at the lowest closing value from August which was at 11723. The low of last week clocked in at 11669 just after the release of the U.S. jobs report. Friday ended with a small bullish key reversal-day.

EURUSD: Daily

EURUSD Weekly Technical Analysis: Euro Setting Up for a Bounce

Turning to the 4-hr chart, there is a descending wedge developing. With a little more time, it could turn into a solid pattern leading to a rebound back to the 11825/80 zone. This pattern could of course could lead to a downside break of support, so playing the formation will require waiting for a closing 4-hr candle above the top-side trend-line.

4-hr

EURUSD Weekly Technical Analysis: Euro Setting Up for a Bounce

Confidence is essential to successful trading, see this new guide – 'Building Confidence in Trading'.

Taking a quick look at the US Dollar Index (DXY), of which the euro holds a ~57% weighting, it put in a bearish key reversal-bar after briefly taking out the August high. While the focus shifts lower in the short-term, the intermediate-term outlook, given the major support from which the DXY is bouncing from, will likely remain constructive following a retracement. It’s premature yet to delve into specifics, but with a modest push lower and turn back higher we could see an inverse ‘head-and-shoulders’ pattern come into view. More on that later should it become relevant…

US Dollar Index: Daily

EURUSD Weekly Technical Analysis: Euro Setting Up for a Bounce

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email bysigning up here.

You can follow Paul on Twitter at@PaulRobinonFX.

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

DISCLOSURES