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
Mixed
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
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
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
Bitcoin
Mixed
More View more
Real Time News
  • #DidYouKnow the global trade volumes dropped by close to 10% amid the Great Recession. Want to know your #tradewars history? Get it here: https://t.co/f4loFVzX6w https://t.co/GDTFHvUIf7
  • The spread of #coronavirus promises a global economic hit at a time when the global economy is perhaps especially ill-equipped to deal with one. Growth-correlated assets are vulnerable. Get your market update from @DavidCottleFX here: https://t.co/0If0Jw7c2P https://t.co/mph6z70XeF
  • The $JPY continues to struggle against the US Dollar but there seems little appetite to push USD/JPY much beyond a range which has tended to reassert itself since late last year. Get your market update from @DavidCottleFX here: https://t.co/iaVfPSuXy4 https://t.co/1QPhJmYlQv
  • The #Euro may bounce after hitting the lowest level in close to three years against the US Dollar. While the broader trend points firmly lower, selling pressure may be ebbing. Get your market update from @IlyaSpivak here: https://t.co/697SQ9j5FY https://t.co/6SEvwQyod8
  • GBP/CAD has broken below the September uptrend while EUR/CAD may be ending its consecutive 12 day decline with EUR/CHF approaching key resistance as NZD/CAD aims at November lows. Get your currencies update from @ZabelinDimitri here: https://t.co/GpRB7IKhTA https://t.co/hlHlGdhkHc
  • The $GBP recoiled from chart resistance against the US Dollar, setting the stage for prices to resume a bearish trend reversal triggered mid-January. Get your market update from @IlyaSpivak here:https://t.co/lVpyZkIfJt https://t.co/9oXusxs0Kg
  • The #Euro may have more room to fall versus its major peers such as the US Dollar, Japanese Yen and British Pound. What is the technical picture of EUR/USD, EUR/JPY and EUR/GBP? Get your market update from @ddubrovskyFX here: https://t.co/M6fLA9g3BK https://t.co/HMwQgr1WP5
  • The $USD’s aggressive rise versus ASEAN currencies such as the Singapore Dollar, Indonesian Rupiah, Malaysian Ringgit and Philippine Peso prolonged. What is the technical road ahead? Find out from @ddubrovskyFX here:https://t.co/RsFptNzODf https://t.co/u8meQUSsVG
  • $AUD broke critical range support against its US counterpart, suggesting deeper losses are ahead even after prices hit an 11-year low. Get your market update from @IlyaSpivak here:https://t.co/45YpJRjDYj https://t.co/zWAzaL78Sc
  • After negotiating a series of economic and geopolitical risks in 2019, the S&P 500 rounded out the year more than 30% higher. Will the stock market crash in 2020? Find out from @PeterHanksFX here: https://t.co/8KsjB9YkBB https://t.co/4ph9bdMxz9
Euro Price Outlook: EUR/USD Breakout Fails at Resistance- Reversal?

Euro Price Outlook: EUR/USD Breakout Fails at Resistance- Reversal?

2019-10-26 04:00:00
Michael Boutros, Technical Strategist
Share:

Euro is down more than 0.8% this week with price now probing areas of interest for support. Here are the levels that matter on the EUR/USD price charts.

Euro is down more than 0.8% against the US Dollar this week with EUR/USD trading at 1.1080 ahead of the New York close on Friday. The pullback from resistance may have further to go but we’re looking for support / entries after last week’s price breakout. These are the updated targets and invalidation levels that matter on the EUR/USD charts this week. Review this week's Strategy Webinar for an in-depth breakdown of this Euro price setup and more.

New to Forex Trading? Get started with this Free Beginners Guide

Euro Price Chart – EUR/USD Weekly

EURUSD Price Chart

Chart Prepared by Michael Boutros, Technical Strategist; EUR/USD on Tradingview

Notes:In my last Euro Weekly Price Outlook we noted that EUR/USD had, “broken out and the rally remains viable while above former slope resistance. From at trading standpoint, look to reduce long-exposure / raise protective stop on a stretch towards 1.1187-1.1208 – look for a bigger reaction there IFreached.” Euro registered a high this week at 1.1080 before turning with weekly momentum failing at the 50-threhsold.

The focus from here is the pullback – IF Euro is indeed heading higher, losses should be limited to confluence support at the yearly low- week close / 61.8% retracement at 1.0976/94 (area of interest for possible exhaustion / long-entries). Key near-term resistance remains at 1.1186-1.1208 with a topside breach / close above targeting the highlighted trendline confluence around the 1.13-handle – look for a bigger reaction there IF reached.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Bottom line:The Euro breakout is testing the first resistance hurdle here and leaves the immediate advance vulnerable heading into next week. From a trading standpoint, look for downside exhaustion ahead of 1.0976/94 for possible long-entries – ultimately, targeting a topside breach of this week’s high. A break below 1.0854 would be terminal with such a scenario exposing the 2017 uncovered close at 1.0725. I’ll publish an updated Euro Dollar Price Outlook once we get further clarity on the near-term EUR/USD technical trading levels.

Euro Trader Sentiment – EUR/USD Price Chart

EURUSD Client Sentiment
  • A summary of IG Client Sentiment shows traders are net-short EUR/USD - the ratio stands at -1.3 (43.48% of traders are long) – weak bullish reading
  • Long positions are 0.26% lower than yesterday and 6.31% higher from last week
  • Short positions are2.16% lower than yesterday and 1.89% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EUR/USD prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current EUR/USD price trend may soon reverse lower despite the fact traders remain net-short.

See how shifts in Euro retail positioning are impacting trend- Learn more about sentiment!

---

Previous Weekly Technical Charts

Learn how to Trade with Confidence in our Free Trading Guide

--- Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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

DISCLOSURES

News & Analysis at your fingertips.