EUR/USD Technical Outlook
- EUR/USD holding proven support level
- Pullback may be over, but hurdles yet to cross
EUR Technical Outlook: EUR/USD Trying to Stabilize, Levels & Lines to Watch
The Euro dipped a bit in recent trade, but as of yesterday it found support at a proven level just a tad beneath the 12000 level. This level has been in play as both support and resistance on several occasions for the past two months.
Given we are seeing EUR/USD hold and turn higher we will use 11985 as the floor; stay above on a daily closing basis and the short-term bias is neutral at worst to bullish. A daily close below support will be a warning that further weakness is on its way.
The 200-day, not in confluence with any highly noteworthy price levels will be next up as a possible level of support. But it would be the March 2020 trend-line (<11900) where focus would turn in the event of a breach of above noted support.
First up as resistance is the trend-line off the January high, and really given how close it is to significant resistance a break above the trend-line will only help the bullish case in a moderate manner. Just a bit shy of 12200 lies significant resistance in the form of several short-term swing highs dating to early December. In confluence with this is a slope from February 2020.
There was one attempt in late February to break above horizontal resistance, but EUR/USD violently rejected lower. This proceeded the sharp March decline. A daily close above 12190 should do the trick in getting the Euro to roll higher towards the January high at 12349 or better.
EUR/USD Daily chart
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---Written by Paul Robinson, Market Analyst
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