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.

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
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Gold looks sick...and not in the youth 'really brilliant' kind of way...#gold #xauusd @DailyFXTeam https://t.co/7fMiQ0RQKS
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.20% Gold: -1.53% Silver: -1.92% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/aM3SZEpfOf
  • The US Dollar lost ground to most ASEAN currencies as Emerging Market assets climbed despite US economic woes. USD/INR is eyeing third-quarter Indian GDP at the end of the week. Get your market update from @ddubrovskyFX here:https://t.co/urDN2b5Nwd https://t.co/mnWY1Ms5HC
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.89% 🇦🇺AUD: 0.87% 🇨🇦CAD: 0.35% 🇬🇧GBP: 0.28% 🇯🇵JPY: 0.22% 🇨🇭CHF: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/aKznxbBnzA
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.06% France 40: 1.00% FTSE 100: 0.83% US 500: 0.80% Germany 30: 0.59% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/JBIeFmHP02
  • Heads Up:🇬🇧 BoE Haskel Speech due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-11-24
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/ERyiY47G5H https://t.co/05P18DtLbu
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/10:30 AM GMT for insight on London #FX and #CFD trading. Register here: https://t.co/AoM3UvLtcF https://t.co/YUu7Pwos43
  • 🇩🇪 Ifo Business Climate (NOV) Actual: 90.7 Expected: 90.1 Previous: 92.5 https://www.dailyfx.com/economic-calendar#2020-11-24
  • Brush up your knowledge on #tradewars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/ZWaL6laTU5 https://t.co/1MAj9f6meB
EUR/USD Technical Analysis: Euro Bounce Capped at Trend Line

EUR/USD Technical Analysis: Euro Bounce Capped at Trend Line

2018-03-15 01:30:00
Ilya Spivak, Head Strategist, APAC
Share:

EUR/USD Technical Strategy: SHORT AT 1.2407

  • Euro brought lower by repeatedly dovish ECB commentary
  • Break below trend support would mark bearish resumption
  • Profit taken on half of short trade, looking to scale back in

Find out what retail traders’ EUR/USD buy and sell decisions say about the coming price trend!

The Euro suffered at the hands of a dovish ECB, as expected. President Mario Draghi poured cold water on speculation about a near-term unwinding of QE asset purchases, saying the program will continue until officials see a “sustained adjustment” in the still “subdued” underlying inflation path. The move validated a bearish EUR/USD chart setup identified ahead of the announcement.

The single currency launched higher as on-target US CPI data eased worries about Fed rate hike acceleration, but the move conspicuously stalled at trend line resistance guiding the down move set mid-February highs. Mr Draghi then helped engineer another downward push, reiterating last week’s remarks and adding that past Euro strength could weigh on inflation down the line (again, as expected).

EUR/USD Technical Analysis: Euro Bounce Capped at Trend Line

From here, a daily close below upward-sloping support established from the March swing low – now at 1.2356 – would mark down trend resumption and open the door for a test of the March 9 low at 1.2273. This is followed by major support at 1.2173, the 38.2% Fibonacci retracement. Alternatively, a push above trend line resistance at 1.2412 puts the 1.2537-8 area (double top, 38.2% Fib expansion) back in focus.

Last week’s EUR/USD short trade triggered at 1.2407 hit its initial objective at 1.2350, and which point profit was booked on half exposure. The remainder remains in play, looking to capitalize on the developing down trend. Opportunities to scale up the position will be taken to the extent that they make sense as standalone trades from a risk/reward perspective. The stop-loss will now activate on a daily close above 1.2412.

EUR/USD TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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

To receive Ilya's analysis directly via email, please SIGN UP HERE

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

DISCLOSURES