News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/mYWO0Eta0P
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here: https://t.co/ZvEMQuFjSs https://t.co/rMmq9cehnY
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/tm4k3IVzHr
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/FFMy5O9YoY
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/jZHcyAZ5SU
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sr63f https://t.co/raO3gCGqQ6
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
EUR/USD Tests Breakout levels, Euro vs USD Price Forecast

EUR/USD Tests Breakout levels, Euro vs USD Price Forecast

Mahmoud Alkudsi, Analyst

EUR/USD Technical Outlook

  • Weak bears and weaker bulls
  • Signals and levels to monitor on EUR vs USD chart

EUR/USD – Trendless Move

On April 6, EUR/USD corrected its downtrend move as created a higher low at 1.0768. On Friday, the pair printed 1.0952 then retreated after. Yet, the weekly candlestick closed with 1.2% gain. This week, the price traded in a sideways move as carved out a lower high at 1.0991.

This week, the Relative Strength Index (RSI) crossed below 50, signaling a possible start of downtrend momentum.

EUR/USD Daily PRICE CHART (OCT 3, 2018 – APRIL 17, 2020) Zoomed Out

EURUSD Daily price chart 17-04-20 zoomed out

EUR/USD Daily Price CHART (FEB 1– April 17, 2020) Zoomed in

EURUSD Daily price chart 17-04-20 zoomed in

Looking at the daily chart, we noticed that on Tuesday EUR/USD rebounded from the high end of current trading zone 1.0822- 1.0992. in the following day, the price declined then closed below the 50-day average generating a bearish signal.

Thus, a close below the low end of the low end of the zone could send EURUSD towards 1.0719. Further close below that level may encourage bears to press towards 1.0498. In that scenario, the daily and weekly support levels underlined on the chart should be kept in focus.

On the flip side, any failure in closing below the low end of the zone could reverse the market’s direction towards the high end of the zone the high end of the zone. Further close above that level may cause a rally towards 1.1241. Having said that, the weekly resistance levels printed on the chart should be monitored.

EUR/USD four Hour Price CHART (MAR 20 – April 17, 2020)

EURUSD Four Hour price chart 17-04-20

From the four-hour chart, we noticed that yesterday EUR/USD broke below the uptrend line originated from the March 20 low at 1.0637 generating a bearish signal. Today, the price tested the uptrend line yet, failed to overtake it and cancel that signal.

Thus, a break below the April 6 low at 1.0768 would generate another bearish signal. This increases the likelihood of EURUSD to fall towards 1.0719. Although, the weekly support level underscored on the chart should be watched closely. In turn, any break in the other direction i.e. above 1.0911 may cause a surge towards the high end of current trading zone discussed above on the daily chart. Nevertheless, the daily resistance level marked on the chart should be considered.

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.

DISCLOSURES