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
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
Bullish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Further gains in USD/IDR could be curbed as USD/PHP establishes a floor around 2017 lows. USD/MYR may fall next as USD/SGD fast approaches a key falling trend line.Get your #ASEAN currencies market update from @ddubrovskyFX here:https://t.co/9JgZm2n8Fl https://t.co/Yg6WSFxt8T
  • The New Zealand Dollar is aiming higher, with NZD/USD eyeing fresh yearly highs while AUD/NZD may be carving out a bearish Head and Shoulders chart pattern. Get your $NZDUSD market update from @DanielGMoss here:https://t.co/osFxXvq5xF https://t.co/zcmqsFR9tg
  • RT @FxWestwater: $EURUSD & $AUDUSD in Focus Ahead of #ECB, Jobs & Retail Sales - @DailyFX https://www.dailyfx.com/forex/market_alert/2020/07/10/eurusd-audusd-eur-usd-aud-usd-in-focus-ahead-of-ecb-jobs-retail-sales.html https://t.co/uBR27tPwgF
  • 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/xOuBrIfm9o
  • @JMcQueenFX https://t.co/TvREDx53du
  • Here's an interesting stat before the weekend - At ~$183 billion, Jeff Bezos' net worth would be the 29th largest stock by market capitalization on the $SPX ranking between Pepsi and Comcast $AMZN is truly remarkable
  • Texas virus cases increase 4.2%, above prior 3.9% 7-day average - BBG
  • I know it is not a coincidence that trade war pressures rise when markets are doing well to help reserve stability. I don't think this strategy will work as well in the US-EU confrontation ($EURUSD) as it has US-China ($USDCNH) https://t.co/R19dytlgIY
  • From a trading standpoint, be on the lookout for possible topside exhaustion with the immediate long-bias vulnerable while below 7042.Get your $AUDUSD technical analysis from @MBForex here:https://t.co/jYzBK1qH4s https://t.co/Zw6Ssp1OnO
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.26% 🇪🇺EUR: 0.13% 🇬🇧GBP: 0.12% 🇨🇦CAD: -0.08% 🇨🇭CHF: -0.12% 🇦🇺AUD: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Pr9kYZ1a4o
EUR/USD Weekly Technical Outlook: Euro May Churn Before Resuming Lower

EUR/USD Weekly Technical Outlook: Euro May Churn Before Resuming Lower

2018-08-20 08:00:00
Paul Robinson, Strategist
Share:

EUR/USD Technical Highlights:

  • EUR/USD bounces off support around 11300
  • May spend a little time ‘backing-and-filling’
  • Path of least resistance favors more selling to follow

See what is driving EUR/USD on a fundamental basis and how the longer-term technicals look in the DailyFX Q3 Euro Forecast.

Last week, the euro traded down to support around the 11300-line, which consists of the U.S. election spike-high in 2016 and test of this level in June of last year before breaking higher. Support keeps a floor in EUR/USD for now, but it isn’t expected to last long as the path of least resistance following the breakdown below 11500 favors more selling.

The next week might not bring the most inspiring price action for making any maneuvers as the market digests recent losses. Trade back up to 11500 is always possible, but seen as a lower probability scenario. If the euro is able to muster enough strength to resistance, though, it could offer a nice risk/reward set-up for would-be shorts.

The higher probability scenario right now is that we see sideways to a smallish upward correction followed by an attempt at breaking below 11300. A break of support should have the euro rolling solidly back downhill, with the next level of support arriving around 11120.

Gotten a little off track? It’s happens to everyone, which is why we put together these 4 ideas to help rebuild your confidence.

EUR/USD Daily Chart (Corrective bounce, then lower)

EUR/USD Weekly Technical Outlook: Euro May Churn Before Resuming Lower

EUR/USD Sentiment

As per IGCS, traders aren’t aggressively buying into the decline, but could that change if support breaks soon. A sharp rise in longs on a breakdown would be a cue to look for more downside momentum to kick in. For more details on the sentiment model and how it acts as a contrarian indicator, check out the IG Client Sentimentpage.

EUR/USD IG Client Sentiment

EUR/USD Weekly Technical Outlook: Euro May Churn Before Resuming Lower

Helpful Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES

News & Analysis at your fingertips.