EUR/USD: Downtrend Move Builds up Momentum - Euro vs USD Price Outlook
EUR/USD Technical Forecast
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EUR/USD – Bearish Development
On Thursday, EUR/USD rallied to its highest level in over two weeks at 1.1097. However, buyers pulled back at this stage allowing sellers to take charge and lead the price. On Friday, the weekly candle stick closed with a 0.3% loss.
Alongside this, the Relative Strength Index (RSI) crossed below 50 then moved to 41 reflecting seller’s building momentum.
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EUR/USD Daily PRice CHART (Mar 31, 2017 – Nov 25, 2019) Zoomed Out
EUR/USD Daily Price CHART (May 22 – Nov 25, 2019) Zoomed in
Looking at the daily chart, we notice on Friday EUR/USD tumbled to the lower trading zone 1.0912- 1.1050, then closed below the 50-day average, highlighting the bearish outlook of the market.
Thus, the price maybe on its way for a test of the low end of the zone. Nevertheless, bearish momentum could weaken at the daily support area and the weekly support level marked on the chart (zoomed in) as some sellers could take profit at those levels.
Further close below the low end of the zone could entice more sellers to join and press towards the vicinity of 1.0820-12. Although, the weekly support levels underlined on the chart should be considered for the same reason mentioned above.
On the flip side, a close above 1.1060 could mean less sellers in the market, in that scenario buyers may take the initiative and press towards 1.1220. That said, the weekly resistance levels and area underscored on the chart should be monitored.
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EUR/USD four Hour Price CHART (SEp 27 – Nov 21, 2019)
From the four-hour chart, we notice today EUR/USD tests the uptrend line originated from the Oct 1 low at 1.0879, hinting to press towards the Nov 14 low at 1.0989.
Hence, a break below the Nov 14 low could mean more bearishness towards 1.0940. Although, the support level underlined on the chart should be kept in focus. On the other hand, a break above 1.1109 could cause a rally towards 1.1153. Yet, the weekly resistance level underlined on the chart should be watched closely.
See the chart to know more about key 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.