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
More View more
Real Time News
  • According to GS, S&P 500 daily returns are positively correlated with flows. Over the last 3 months, flows have been strong, but the $SPX was flat (model predicted a 7% rally). When SPX returns and flows deviate, they tend to mean-revert in subsequent periods #trading https://t.co/2JbZV2dbAa
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/tWwIzXWwj3
  • Further your forex knowledge and gain insights from our expert analysts @ddubrovskyFX and @FxWestwater on JPY with our free Q4 market analysis guide, available for free today.https://t.co/mzeJ5x73N3 https://t.co/lDBYbDLQtZ
  • How does stock market liquidity benefit its traders? Learn more here: https://t.co/FWKyIDUwAw https://t.co/tyoYrsh8mQ
  • 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/4078fnQJON
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/kIIBffEMi7 https://t.co/tt59BU8lnS
  • Quarterly earnings from Netflix and Tesla, two big tech companies, will take center stage next week and could set the trading tone for the S&P 500 and the Nasdaq 100. Get your weekly equities forecast from @DColmanFX here: https://t.co/NOCqjJ3TLd https://t.co/HR5xUZeJXp
  • Do you know the difference between investing and trading? Because while the goal might seem the same, they're very different things . Learn more here.https://t.co/fG6fNEPj9q https://t.co/ymGaYjrl1g
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/FOMcsxci50
  • Further your trading knowledge and gain informed market analyses from our expert analyst @DavidJSong on Oil with our free Q4 guide, available for free today.https://t.co/Y6XECmr5fQ https://t.co/XQI3PN4bkQ
EUR/USD Forecast: Will Euro vs USD Resume Bearish Price Action ?

EUR/USD Forecast: Will Euro vs USD Resume Bearish Price Action ?

Mahmoud Alkudsi, Analyst

Euro vs US Dollar Technical Outlook

  • EUR vs USD chart exposes a sideways move
  • Bears could press EURUSD to a multi-week low

Indecisive Traders

On Wednesday, EUR/USD rallied and neared the 1.0900 handle. However, the price declined and erased all of those gains. On Friday, the weekly candlestick closed with a Doji pattern reflecting the market’s indecision at this point.

Alongside that, the Relative Strength Index (RSI) remained flat below 50, highlighting a paused bearish momentum.

EUR/USD DAILY PRICE CHART (SEP 1, 2018 – May 18, 2020) Zoomed Out

EURUSD Daily price chart 18-05-20 zoomed out

EUR/USD DAILY PRICE CHART ( JAN 23 – May 18, 2020) Zoomed IN

EURUSD Daily price chart 18-05-20 zoomed in

Based on the daily chart analysis, on March 20 EUR/USD fell to a near three-year low at 1.0637. Later on, the market traded in a sideways move creating higher lows with lower highs then developed a symmetrical triangle pattern. Any violation of the lower line of the triangle would be a bearish signal.

On Wednesday, EURUSD declined to the current trading zone 1.0719 – 1.0822. Since then, the market has tested the high end of the zone yet failed to rally to the higher zone.

A close below the low end of the aforementioned trading zone could send EURUSD towards 1.0498. A further close below that level could embolden bears to press towards 1.0292. In that scenario, the weekly support area and levels marked on the chart (Zoomed in) should be monitored.

On the flip-side, a close above the high end of the zone may trigger a rally towards 1.0992. A further close above that level could extend this rally towards 1.1240. That being side, the daily and weekly resistance levels underscored on the chart should be kept in focus.

EUR/USD Four-Hour PRICE CHART (March 23 – May 18, 2020)

EURUSD Four Hour price chart 18-05-20

Looking at the four- hour chart, on April 16 EUR/USD broke below the uptrend line originated from the March 20 low mentioned in the daily chart analysis, then declined after. Today, the price eyes testing another uptrend line originated from the May 7 low at 1.0766. Therefore, any violation of this line would be considered as a bearish signal.

A break below 1.0763 would be considered another bearish signal and possibly send EURUSD towards the low end of the current trading zone discussed above on the daily chart. Although, the weekly support level underlined on the chart should be watched closely. In turn, any break in the other direction i.e. above 1.0896 may cause a rally towards 1.0992. Nonetheless, the weekly resistance level printed on the chart should be considered.

See the chart to find out more about the key levels EURUSD would encounter in a further bearish /bullish scenario.

Written By: Mahmoud Alkudsi, Market Analyst

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