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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: 0.05% Oil - US Crude: -0.38% Silver: -0.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/9AiehtJMsK
  • The Norwegian Krone and crude #oil prices will be in for turbulent week ahead of an avalanche of central bank rate decisions against the backdrop of political volatility in the middle east. Get your market update from @ZabelinDimitri here: https://t.co/1PKtivOiFv #OOTT https://t.co/IdHpQbAgNe
  • Fantastic thread on the #Fed including explainer on recent repo market cash crunch PS - I highly encourage giving @Trinhnomics a follow https://t.co/GYwqXuTfjY
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: -0.04% 🇪🇺EUR: -0.04% 🇬🇧GBP: -0.06% 🇯🇵JPY: -0.09% 🇦🇺AUD: -0.20% 🇳🇿NZD: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/x5I15C64eW
  • #USDJPY's uptrend has stalled, probably while the market awaits the #Fed. It's looking a little stretched but not seriously threatened. https://www.dailyfx.com/forex/technical/home/analysis/usd-jpy/2019/09/18/Japanese-Yen-Remains-Defensive-As-Dollar-Bulls-Eye-Key-Resistance-.html?utm_source=Twitter&utm_medium=Cottle&utm_campaign=twr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.68%, while traders in France 40 are at opposite extremes with 81.16%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/k2BRFZYdBl
  • 🇦🇺 AUD Unemployment Rate (AUG), Actual: N/A Expected: 5.2% Previous: 5.2% https://www.dailyfx.com/economic-calendar#2019-09-19
  • Cautious "risk-off" tilt at early phase of Wednesday's session. Pro-risk #AUD and #NZD falling alongside #Nikkei225 futures as haven-linked #USD rises. Follow-through may be lacking until the #Fed passes later today https://t.co/0TLRTELdWv
  • How can traders avoid #FOMOintrading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 https://t.co/DRa1lwjBWp
  • RT @NickTimiraos: There will be a temptation to call any resumption of balance sheet expansion by the Fed quantitative easing, which isn't…
EURUSD Weekly Technical Outlook: Euro Testing Resolve of Shorts

EURUSD Weekly Technical Outlook: Euro Testing Resolve of Shorts

2019-05-12 04:00:00
Paul Robinson, Currency Strategist
Share:

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

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

DISCLOSURES

News & Analysis at your fingertips.