EUR/USD Price Weekly Forecast: Buyers Shy Away From Pivotal levels
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EUR/USD Technical Analysis
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EUR/USD – Bullish Development
On Oct 10, EUR/USD resumed its upside move. Buyers were successful to clear 1.1000 handle after failing in multiple occasions. The price broke above the downtrend line originated from the 25 high at 1.1412 eyeing a test of 1.1154.
Alongside this, the Relative Strength Index (RSI), crossed above 50 indicating to the end of the downtrend bias, and to a possible start of a fresh uptrend momentum.
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EUR/USD Daily PRice CHART (Mar 20, 2017 – OCt 14, 2019) Zoomed Out
EUR/USD Daily Price CHART (June 27 – Oct 14, 2019) Zoomed in
Looking at the daily chart, we notice on Friday, EUR/USD rallied and printed its highest level in three weeks however, the price pulled back then settled below the high end of current trading zone 1.0912 – 1.1060 increasing the likelihood of a possible reversal.
Currently, EUR/USD may be on its way for a test of the low end of the zone. Further close below the low end could see more bearishness towards 1.0812. Although, the weekly support levels underlined on the chart (zoomed in) should be kept in focus.
Having said that, any close above the high end of the zone could embolden buyers to rally EURUSD towards the vicinity of 1.1215-20. Nevertheless, the weekly resistance levels underscored on the chart should be watched closely.
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EUR/USD four Hour Price CHART (Sep 6 – Oct 14, 2019)
From the four-hour chart we notice on Oct 2 EURUSD corrected higher creating a higher high at 1.0999 then paused it’s upward move. On Oct 8 the price resumed bullish price action and on Friday created a higher low with higher high.
Hence, a break above 1.1084 could send EURUSD towards 1.1129. However, the weekly resistance marked on the chart should be considered. On the other hand, any break below 1.0996 may send the price towards the low end of the aforementioned trading zone. In that scenario, the weekly support level would be worth monitoring.
See the chart to know more about key technical levels the price would encounter in a further bullish/bearish move.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.