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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Forex Strategy - EUR/USD Open to Breakout in Absence of Reversal Signal

Forex Strategy - EUR/USD Open to Breakout in Absence of Reversal Signal

David de Ferranti, Currency Analyst

To receive David’sanalysis directly via email, please SIGN UP HERE

Talking Points

  • EUR/USD Technical Strategy: Upside break prefers longs
  • Absent bearish reversal signal opens up further gains
  • Upcoming NFPs likely to spark break of Asian session range

As noted in yesterday’s report; the ECB rate decision stood to brush aside a number of technical readings on EUR/USD. Following an upbeat growth forecast from the central bank the Euro bulls took charge and pushed the common currency back above the 1.3800 level.

Following the break higher, sellers have emerged at the 1.3865 mark, which coincides with a test of the longer-term downward trend line on the weekly (below). This leaves EUR/USD at a critical juncture.

Intraday action has been lackluster to say the least – with prices consolidating in a narrow 11 pip range during Asian trading. We’re also yet to see a bearish reversal candlestick formation emerge which could hint at declines for the pair. An upside breakout would likely favor a continued advance and fresh multi-year highs.

Again, traders should note that key fundamental event risk looms ahead. One of the most influential data releases of the month, US Non-Farm-Payrolls, is due to cross the wires in the US session, and is likely to spark further volatility for EUR/USD.

Confirm your chart-based trade setups with the Technical Analyzer.

Forex_Strategy_-_EURUSD_Open_to_Breakout_in_Absence_of_Reversal_Signal_body_Picture_3.png, Forex Strategy - EUR/USD Open to Breakout in Absence of Reversal Signal

Hourly Chart - Created Using FXCM Marketscope 2.0

Forex_Strategy_-_EURUSD_Open_to_Breakout_in_Absence_of_Reversal_Signal_body_Picture_2.png, Forex Strategy - EUR/USD Open to Breakout in Absence of Reversal Signal

Daily Chart - Created Using FXCM Marketscope 2.0

Forex_Strategy_-_EURUSD_Open_to_Breakout_in_Absence_of_Reversal_Signal_body_Picture_1.png, Forex Strategy - EUR/USD Open to Breakout in Absence of Reversal Signal

--- Written by David de Ferranti, Market Analyst, FXCM

Contact and follow David on Twitter: @Davidde

New to FX? START HERE

For live market updates, visit the Real Time News Feed

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

DISCLOSURES