EUR/USD Technical Outlook: Euro Enters Week with Uncertainty
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EUR/USD Price Technical Outlook: Neutral
- EUR/USD leaning lower at the moment, but…
- Could reverse back higher, making the outlook difficult
- Watch the recent high/low levels for cues
Euro enters week with a bit of uncertainty
EUR/USD leaves us with something to be desired in terms of directional cues as we enter a new week, but there are some levels/lines to watch that could help shape the trading outlook. At the moment the euro is turning lower within the short-term confines of a channel on the hourly chart.
But this structure could be snapped and how things play out on the daily will ultimately determine the broader outlook. A breakout above 11830 is needed to create a more convincing bullish case that could see price rise back up towards the 12000 high.
Conversely, a breakdown below 11612 is required to create a lower low that puts EUR/USD on path for more selling. With how low volatility has been recently, we could see price stay contained within these two thresholds until a strong enough catalyst can kick things into gear one way or the other.
In sum, this makes the next week potentially a difficult one to trade for those looking for a sustained move. Short-term traders may be able to continue using the hourly channel as a guide until it is snapped.
EUR/USD Daily Chart (watch recent high/low)
EUR/USD Hourly Chart (watch downward channel)
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---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.