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
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Euro Weekly Technical Outlook: EUR/USD Channel Structure in Focus

Euro Weekly Technical Outlook: EUR/USD Channel Structure in Focus

What's on this page

EUR/USD Technical Outlook – NEUTRAL

  • EUR/USD channeling higher but momentum is weak
  • Continued strength could have big roadblock in play
  • A correction will put the trend to a test

EUR/USD trend higher but tepid

The Euro continues to rally against the Dollar, but over the past month it has lost considerable momentum. This doesn’t mean the EUR/USD rally is on its way to ending, but if it continues to act sluggish it might not take much to snap the upward channel structure.

As it currently sits at the bottom of the channel, which acts as support, we will want to see if it can hold and turn back higher as it has on each little dip in recent weeks. If it can, then look for it to rally to a new cycle high above 12349.

The potential here, still, is that we see the 2018 highs in the mid 124/125s reached. If the EUR/USD can reach that point we will see what it is really made of, as it will be a substantial area to climb through.

On the flip-side, should support break then we could see a decline ensue that takes price back to a trend-line running higher since May. The line may intersect as confluence with the September 1 high at 12011. This would be another point in time, as we would get a chance to see what the trend is made of as a correction is either met or not met by buyers.

All-in-all, sticking with the multi-week channel as a guide for now. If price stays above the lower parallel then the trend remains neutral to upward, fall below and things could turn negative for the single currency.

EUR Forecast
EUR Forecast
Recommended by Paul Robinson
Check out the Q1 Euro Forecast
Get My Guide

EUR/USD Daily Chart (channeling towards 2018 highs)

EUR/USD 4-hr Chart (channel structure in play near-term)

Please add a description for the image.

EUR/USD Charts by TradingView

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.