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.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Bearish
Wall Street
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.64%, while traders in US 500 are at opposite extremes with 75.52%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5aSCLBqXc1
  • Heads Up:🇲🇽 Economic Activity YoY due at 11:00 GMT (15min) Expected: -3.5% Previous: -0.6% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇲🇽 GDP Growth Rate YoY Final due at 11:00 GMT (15min) Previous: -0.5% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Emerging market currencies haven’t been treated equally by the effects of global contagion, even if most have suffered to some degree. However withdrawal of investment flows could hit them all. Get your market update from @DavidCottleFX here:https://t.co/QzNoNYgMgP https://t.co/rIrzpGTgvn
  • Chinese President Xi says will step up preparedness for military combat
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 1.31% Oil - US Crude: 0.90% Gold: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/LKcIsCQeTg
  • #DAX30, #dowjones : la reapertura económica lidera los avances #trading https://t.co/GoI9cOuD9A
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 1.28% 🇦🇺AUD: 1.17% 🇬🇧GBP: 1.01% 🇪🇺EUR: 0.57% 🇨🇭CHF: 0.35% 🇯🇵JPY: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/eMQxa6E4eU
  • Coming up at half past the hour: my weekly webinar on market #sentiment. Do join me if you can. You can sign up here: https://www.dailyfx.com/webinars/181540619?ref-author=essex&CHID=9&QPID=917711
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: France 40: 1.67% Wall Street: 0.90% Germany 30: 0.89% US 500: 0.65% FTSE 100: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/5LHY5FmIF9
EUR/USD Forecast: Will Euro vs USD Resume Bearish Price Action ?

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

2020-05-18 09:32:00
Mahmoud Alkudsi, Analyst
Share:

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 Forecast
EUR Forecast
Recommended by Mahmoud Alkudsi
Download our fresh Q2 Euro Forecast
Get My Guide

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.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Mahmoud Alkudsi
Traits of Successful Traders
Get My Guide

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

News & Analysis at your fingertips.