EUR/USD Technical Forecast
EUR/USD – Buyers Pullback
On Thursday, EUR/USD geared up to 1.1200 handle -its highest level in four months. The price declined after as some buyers took profit. On Friday, the pair closed the weekly candlestick in the green with a 0.5% gain.
This week, the Relative Strength Index (RSI) remained flat above 50, reflecting a paused uptrend momentum.
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EUR/USD Daily PRice CHART (Mar 31, 2017 – DEC19, 2019) Zoomed Out
EUR/USD Daily Price CHART (June 25 – DEC 19, 2019) Zoomed in
Looking at the daily chart, we notice on Dec 9 EUR/USD rushed to a higher trading zone 1.1050- 1.1220. Since then, the price has remained moving in the zone eyeing a test of the high end of it. Additionally, the pair continues trading above 50-day average, indicating that buyers are still in charge.
A close above the high end of the zone, may cause more buyers to join the market and push EURUSD towards 1.1286. Nevertheless, the weekly resistance zone marked in the chart (zoomed in) should be kept in focus.
On the other hand, a close below the low end, would indicate to buyer’s loss of control. This paves the way for sellers to take charge and press EURUSD towards 1.0912. That said, the weekly support area and levels underscored on the chart should be watched closely as some sellers could take profit at these points.
EUR/USD four Hour Price CHART (SEp 24 – DEC 19, 2019)
From the four-hour chart, we notice on Nov 29 EUR/USD started uptrend move creating a series of higher highs with higher lows. The price peaked on Thursday at 1.1200 then singled to a possible reversal as developed head and shoulders pattern. Yesterday, the pair rebounded twice from the neckline highlighting uptrend move was still intact.
Thus, a break below 1.1093 could send EURUSD towards 1.1062. Yet, the daily support level underlined on the chart should be considered. On the flip-side, a break above 1.1234 may cause a rally toward 1.1286. Although, the weekly resistance level underscored on the chart should be monitored.
See the chart to know more about key levels the price would encounter in a further bullish/ bearish move.
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Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
