EUR/USD Technical Outlook – Euro Poised to Rally Further vs Dollar
EUR/USD Technical Highlights:
- EUR/USD holding recent burst to new cycle highs
- Consolidation pattern set up to lead to another run
- The 12500-area may be where it ends up relatively soon
EUR/USD poised to trade higher after consolidating
Recently, the Euro exploded above the September high, putting it in position to rally even further. However, before getting too bullish it was viewed as preferable that we see a consolidation/small pullback that held above the breakout around 12000.
So far that is exactly what we have seen. This sets EUR/USD to rally even higher in the days/weeks ahead. It may not be a straight line move higher, but the general trading bias is towards the upside for the foreseeable future.
Looking to the left on the charts, the next big level of resistance isn’t until the February 2018 high around 12500. It’s not that far away. An obtainable objective between now and the early part of January. At that juncture we could see a big reversal, but we won’t worry about that until price arrives at that point, should it.
To flip the currently bullish bias, an aggressive thrust lower is needed, and one that pushes price below the breakout point of 12011 (September high). This may not entirely reverse the trend, but would put EUR/USD on its backfoot with more losses likely in its future.
EUR/USD Weekly Chart (12500s next?)
EUR/USD Daily Chart (consolidating well)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.