Skip to Content
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.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
EUR/USD Technical Analysis: Euro Coiling Up for a Breakout?

EUR/USD Technical Analysis: Euro Coiling Up for a Breakout?

What's on this page

EUR/USD TECHNICALANALYSIS – TALKING POINTS:

  • Euro might be coiling up for a breakout amid congestion below 1.15 figure
  • Lull in top event risk next week may give markets room to build conviction
  • Overall chart positioning seems to argue for a broadly bearish trend bias

The Euro may find be at a decisive juncture as the third quarter gets underway. The single currency faces a week largely devoid of big-splash event risk, leaving markets ample room to ponder next steps following a month of choppy consolidation, which may be setting the stage for a breakout.

Average daily rate-of-change studies show that volatility dropped back in June, receding to levels prevailing before the Covid-19 outbreak. Directional conviction has ebbed in tandem, with EUR/USD confined to a choppy congestion range anchored above resistance-turned-support at 1.1147. The first major upside hurdle lines up in the 1.1423-96 area, marked by recent swing highs.

Eur/usd chart

EUR/USD daily chart created with TradingView

While the bounds of May’s near-term uptrend have been broken, it is as yet unclear whether subsequent indecision marks digestion before another foray upward or the start of a reversal downward. Nevertheless, longer-term positioning on the monthly chart suggests the broader trend bias remains bearish, with a 12-year downtrend firmly intact and probably needing a push above 1.19 to be face invalidation.

EURUSD price chart

EUR/USD monthly chart created with TradingView

EUR Forecast
EUR Forecast
Recommended by Ilya Spivak
Get Your Free EUR Forecast
Get My Guide

EUR/USD TRADING RESOURCES

--- Written by Ilya Spivak, Head APAC Strategist for DailyFX

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

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

DISCLOSURES