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EUR/USD Technical Analysis: Trying to Clear Path Above 1.18

EUR/USD Technical Analysis: Trying to Clear Path Above 1.18

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Talking Points:

  • EUR/USD Technical Strategy: Flat
  • Euro rises to highest in almost 3 years as FOMC sinks the US Dollar
  • Narrow near-term range argues against a trade on risk/reward grounds

The Euro continues to push higher against the US Dollar, with prices surging to the highest level since January 2015 following an FOMC statement the markets deemed to be dovish. Thus far however, the depth of recovery is yet to match the average for corrections in the long-term down trend from 2008 highs (21 percent).

Near-term resistance is at 1.1752, the 23.6% Fibonacci expansion, with a break above that confirmed on a daily closing basis opening the door for a test of the 38.2% level at 1.1839. Alternatively, a move back below the 14.6% Fib at 1.1699 paves the way for another challenge of the July 26 low at 1.1612.

The available trading range is too narrow to justify taking a trade on the long or short side from a risk/reward perspective. With that in mind, opting to remain on the sidelines seems most prudent until a better-defined opportunity to enter a position presents itself.

What will drive the longer-term trend in the Euro? See our forecast here !

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