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
Bullish
Wall Street
Mixed
Gold
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
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Join analyst @DavidJSong at 6:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/dQxyAORI9P
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZnn4H
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/782gHedGTW https://t.co/i6fB1PIQbx
  • #Crudeoil prices could reverse lower as the #OPEC Monthly Oil Market Report (MOMR) forecasts fading global demand and oversupply concerns. Get your #commodities update from @DanielGMoss here: https://t.co/G02ajeLPqZ https://t.co/THuauT4XQ9
  • The outlook for the $EURUSD pair has worsened after its failure to move back to the high just above 1.20 touched on September 1 despite the #ECB’s decision earlier this month not to talk down the Euro. Get your #currencies update from @MartinSEssex here: https://t.co/kDCHxHgGlU https://t.co/Li4jHqaNdC
  • #USDollar Outlook Bearish on Mnuchin & Powell Testimonies, Key US Data ⬇️ https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2020/09/20/US-Dollar-Outlook-Bearish-on-Mnuchin-Powell-Testimonies-Key-US-Data.html
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: https://t.co/UTWxbnNz7M https://t.co/fuWSUDE1pT
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/eRTdlhAOFN
  • The Japanese #Yen may continue to exhibit a bullish behavior as the Bank of Japan (BoJ) appears to be in no rush to alter the path for monetary policy. Get your #currencies update from @DavidJSong here: https://t.co/HFjc6KGzRw
  • The New Zealand Dollar appears poised to extend its climb against its haven-associated counterparts as long-term trend break hints at cyclical upturn. Get your $NZDUSD market update from @DanielGMoss here: https://t.co/CPxP1Q8B6d https://t.co/n2wESiqnpJ
Euro Biased Lower But Weekly Chart Shows Warning Sign for Sellers

Euro Biased Lower But Weekly Chart Shows Warning Sign for Sellers

2018-10-21 04:00:00
Ilya Spivak, Head Strategist, APAC
Share:

TECHNICAL FORECAST FOR THE EURO: BEARISH

  • Euro retreats to October bottom but breakout confirmation still pending
  • Weekly chart warns a Head and Shoulders bottom may be taking shape
  • Short position still in play as decade-long bearish trend remains intact

See our free guide to get help gain confidence in your Euro trading strategy!

The Euro is trying to resume the downtrend against the US Dollar after hawkish minutes from September’s FOMC meeting, as expected. Daily chart positioning continues to look somewhat convoluted however. Prices sank back to support marked by the October 9 low at 1.1432 but a breakout is yet to be confirmed.

Euro Biased Lower But Weekly Chart Shows Warning Sign for Sellers

The outlines of a would-be Head & Shoulders (H&S) bottom on the weekly chart muddy the waters further. Confirmation on a close above neckline resistance at 1.1768 would imply a measured move higher to probe resistance above the 1.22 figure.

Euro Biased Lower But Weekly Chart Shows Warning Sign for Sellers

Still, the longer-term picture looks decidedly bearish. The monthly chart shows prices resuming a decade-long decline after breaking counter-trend support in April. Indeed, even if the H&S setup were to be realized, the outlines of this decline would be kept broadly intact.

Euro Biased Lower But Weekly Chart Shows Warning Sign for Sellers

With that in mind, the short EUR/USD trade initially triggered at 1.1708 and then scaled up at 1.1468 remains in play but convincing invalidation of the weekly H&S setup will be sought before adding to exposure further. Alternatively, a close above daily chart trend resistance – now at 1.1628 – may see the trade unwound.

--- Written by Ilya Spivak, Sr. Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivakon Twitter

EURO TRADING RESOURCES

OTHER TECHNICAL FORECASTS:

Australian Dollar Forecast: AUD/USD in Consolidation. GBP/AUD Risks Reversal, AUD/NZD More so

British Pound Forecast: Higher Prices Unlikely

US Dollar Forecast: Can the Dollar Draw from EURUSD, USDJPY to Return to 15 Month Highs?

Equity Forecast: Technical Forecast for Dow, S&P 500, FTSE 100, DAX and Nikkei

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

DISCLOSURES