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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • Will be discussing the Japanese #Yen and what you can expect throughout this week in about 15min! Signup for the webinar in the link below! https://t.co/Jbtd2hc5nU
  • Please join @ddubrovskyFX at 20:00 EST/00:00 GMT for a webinar on what other traders' buy/sell bets say about price trends. Register here: https://t.co/AzOQioRZER https://t.co/uy1tAhiwGY
  • RT @FxWestwater: $NZDUSD Wedge Breakout Back in Play on Stellar Q2 Jobs Report Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/08/03/NZDUSD-Wedge-Breakout-Back-in-Play-on-Stellar-Q2-Jobs-Report.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/YAIqqu5RDB
  • 🇦🇺 Markit Services PMI Final (JUL) Actual: 44.2 Previous: 56.8 https://www.dailyfx.com/economic-calendar#2021-08-03
  • $AUDNZD likely to attempt closing at a new 2021 low over the remaining 24 hours following the stellar New Zealand jobs report The December 2020 low has been further exposed at 1.0418 since July's #RBNZ rate decision New Zealand bond yields on the rise https://t.co/ipjwkSNt9n https://t.co/ncQX4hL8G3
  • Strong jobs report lifts $NZD - Money markets pricing in a 93% probability of a 25bps hike at the August meeting (previously 77%) - Over the forecast horizon, the RBNZ had projected (in the May MPS) the unemployment rate to gradually fall to 4.3% https://t.co/G5Ejzl2H6L
  • #NZDUSD cautiously higher after solid New Zealand jobs report Unemployment rate declined to 4.0% in Q2 from 4.7% prior (vs 4.4% anticipated) Job gains were at 1.7% y/y vs 1.2% expected Data seems to be supporting the case for a less-dovish #RBNZ given the cease to QE recently https://t.co/XmzhuLXh1H
  • 🇳🇿 Unemployment Rate (Q2) Actual: 4% Expected: 4.5% Previous: 4.7% https://www.dailyfx.com/economic-calendar#2021-08-03
  • 🇳🇿 Employment Change QoQ (Q2) Actual: 1% Expected: 0.7% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2021-08-03
  • Heads Up:🇦🇺 Markit Services PMI Final (JUL) due at 23:00 GMT (15min) Previous: 56.8 https://www.dailyfx.com/economic-calendar#2021-08-03
EURUSD Weekly Technical Outlook: Euro Testing Resolve of Shorts

EURUSD Weekly Technical Outlook: Euro Testing Resolve of Shorts

Paul Robinson, Strategist

EURUSD Technical Highlights:

  • Euro breaking trend-line from March
  • Further strength will bring into play another set of trend-lines
  • Ascending wedge could develop before making a meaningful move

Check out the DailyFX Trading Guides page for intermediate-term forecasts, educational content aimed all experience levels, and more.

EURUSD is trying to break higher, but has obstacles

The Euro is currently making a run above the trend-line extending down from the March high, giving the single-currency some renewed life. A climb, however, will be needed above the May 1 reversal-day high before further upside can develop.

If we see EURUSD turn down from around this month’s high a broader ascending wedge (most easily visible on the 4-hr chart) could come to form nicely. This pattern suggests further price appreciation with the higher lows marking increased strength. But we will need to see a breakout as these patterns can resolve themselves in either direction.

Whether a climb above the May 1 happens straight-away from here or from an ascending wedge, it wouldn’t be long before the Euro runs into difficulties again. From the February and September peaks of last year there are a pair of trend-lines running in confluence near 11300. Just above there lies the swing-high from April at 11324. All this combined will make for a tough test and also doesn’t leave much room from current levels.

In the event an ascending wedge develops and the underside trend-line of the pattern is broken, watch for a test of last month’s lows around 11110 or worse. Declines (and rallies) have been met with opposition, though, so don’t look for big momentum at this time. This makes profit-taking on positions prudent on any meaningful swing in price.

Check out the IG Client Sentiment page to find out how changes in positioning in major markets could signal the next price move.

EURUSD Daily Chart (trend-line resistance not far ahead)

EURUSD

EURUSD 4-hr Chart (Ascending wedge building)

EURUSD

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