EUR/USD Price Eyes 1.1200 as US Dollar Braces for FED Rate Decision
EUR/USD Technical Analysis
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EUR/USD – Paused Uptrend Move
On Oct 11, EUR/USD started a fresh uptrend led the price on Oct 21 to 1.1179- its highest in over two months. Since then, the pair has not been able to rally further, reflecting buyer’s hesitation at this stage.
This week, the Relative Strength Index (RSI) remained above 50 although, dropped sharply from 66 to 53 indicating to uptrend loss of momentum.
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EUR/USD Daily PRice CHART (MaY 22, 2017 – OCt 30, 2019) Zoomed Out
EUR/USD Daily Price CHART (July 24 – Oct 30, 2019) Zoomed in
Looking at the daily chart, we notice on Oct 16 EUR/USD moved to a higher trading zone 1.1060 – 1.1220, then closed above the 50 -day moving average. Last week, the price pulled back and yet, remained in the zone without testing its low end.
This week, uptrend move is at crossroads. A close below 1.1050 opens the door for EURUSD to correct lower and press towards 1.0912. In that scenario, the daily and weekly support levels underlined on the chart should be watched closely.
On the other hand, a close above the high end of the zone could see EURUSD resuming bullish price action towards 1.1286. Although, buyers need to keep an eye on the weekly resistance levels underscored on the chart.
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EUR/USD four Hour Price CHART (SEP 18 – Oct 30, 2019)
From the four-hour chart, we notice yesterday EUR/USD broke above the neckline of a double bottom pattern located at 1.1106, since then the pair remained above eying a test of 1.1138. Today, this price meets with the downtrend line originated from the oct 21 high at 1.1179.
Therefore, a break above 1.1163 could cause a rally towards 1.1200. Although, the oct 21 high mentioned above should be considered. See the chart to know more about key levels the price would encounter in a further bullish move.
On the other side, a break below the aforementioned neckline would negate the double bottom pattern. Hence, a break below 1.1027 could press EURUSD towards 1.0951. Nevertheless, the weekly support area marked on the chart should be kept in focus.
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.