EUR/USD Unfinished Uptrend Move, Euro vs US Dollar Price Forecast
EUR/USD Technical Analysis
EUR/USD – Bulls in charge
On Friday, Euro rallied against US Dollar to 1.1354 – its highest level in over seven months. The market retreated after, as some bulls seemed to cut back. Yet, the weekly candlestick closed with 2.3% gain.
This week, the Relative Strength Index (RSI) fell 77 to 70 signaling a weaker uptrend move
EUR/USD Daily PRice CHART (JULY 1, 2018 – Mar 11, 2020) Zoomed Out
EUR/USD Daily Price CHART (Sep 25 – Mar 11, 2020) Zoomed in
Looking at the daily chart, we noticed that last week EUR/USD opened with a gap to the upside (breakaway gap) then closed above the 50-day average providing two bullish signals in that day. On Friday, the price moved to a higher trading zone 1.1240- 1.1412 highlighting the bullish outlook of the market.
This week, the price opened with another upward gap (runaway gap) indicating that uptrend move could be far from finished, as we have not seen any exhaustion gap yet. Yesterday, the market failed to move to a higher trading zone. Thus, the price could be on its way for a test of the low end.
A close below the low end of the zone reflects bull’s reluctance. This could lead some of them to exit the market allowing EURUSD to fall towards 1.1108. Further close below 1.1059 may send the price even lower towards 1.0951. That said, the daily and weekly support levels underlined on the chart (zoomed in) should be considered.
On the other hand, any failure in closing below the low end of the zone could mean bull’s comeback, and might cause a rally towards the high end of the zone. Further close above that level may embolden bulls to push towards 1.1508. Yet, the daily resistance area marked on the chart should be kept in focus.
EUR/USD four Hour Price CHART (Jan 29 – Mar 11, 2020)
From the four-hour chart, we noticed that in late February EUR/USD started uptrend move creating higher highs with higher lows. On Monday, the price flirted with 1.1500 handle.
A break above 1.1371 could cause a rally towards 1.1412. Although, the daily resistance underscored on the chart should be monitored. On the flip side, any break below 1.1204 could send the price toward 1.1118. Nevertheless, the daily support level printed on the chart should be watched closely.
See the chart to know more about key technical levels in a further bullish/bearish scenario.
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.