EUR/USD Technical Outlook
EUR/USD – Hesitant Buyers
On Thursday, EUR/USD rallied to 1.1172 – its highest level in over a week. However, the price declined after as some buyers took profit. On Friday, the price closed the weekly candlestick in the red with nearly 0.3% loss.
The Relative Strength Index (RSI) crossed below 50 highlighting weaker buyers and a possible start of downtrend move.
EUR/USD Daily PRice CHART (July 15, 2018 – Jan 20, 2020) Zoomed Out
EUR/USD Daily Price CHART (AUG 25 – Jan 20, 2020) Zoomed in
Looking at the daily chart, we notice on Friday EUR/USD tumbled to a lower trading zone 1.1059 – 1.1108 then closed below the 50-Day average providing two bearish signals.
A close below the low end of the zone could lead more buyers to exit their trades. This paves the way for sellers to take charge and press EURUSD towards 1.0951. Yet, the weekly support levels and area marked on the chart (zoomed in) should be watched closely, as some traders could exit/join the market nearby these points.
On the other hand, any failure in closing below the low end of the zone may reverse the pair’s course. This could rally EURUSD towards the high end of the zone. Further close above 1.1118 might encourage buyers to repeat last week’s scenario and push towards 1.1175. That said, the weekly resistance level underscored on the chart would be worth monitoring.
EUR/USD four Hour Price CHART (Nov 21 – Jan 20, 2020)
From the four-hour chart, we notice today EUR/USD broke below the Jan 10 low at 1.1085 and printed its lowest level since the start of this year so far today at 1.1082.
A break below 1.1055 could lead EURUSD towards 1.1020. Nevertheless, the support level underlined on the chart should be monitored. On the flip side, any rally above 1.1129 could lead the price towards 1.1162. Although, the weekly resistance level underscored on the chart should be kept in focus.
See the chart to know more about key technical levels in a further bullish/bearish scenario.
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Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
