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 USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here: https://t.co/n0CVWWOJDe https://t.co/0uLjsQ2gwM
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
  • 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
Euro Price Outlook: EUR/USD Plunge Targets Key Support at 2021 Low

Euro Price Outlook: EUR/USD Plunge Targets Key Support at 2021 Low

Michael Boutros, Strategist

Euro Technical Price Outlook: EUR/USD Near-term Trade Levels

  • Euro updated technical trade levels – Daily & Intraday Charts
  • EUR/USD plummets towards key technical support at the yearly lows
  • Resistance 1.1760, 1.18- Key Support at 1.1695, 1.1621
Advertisement

Euro plunged more than 0.7% against the US Dollar this week with EUR/USD plummeting towards critical support at the yearly lows. These are the updated targets and invalidation levels that matter on the EUR/USD technical price charts heading into the close of the week. Review my latest Strategy Webinar for an in-depth breakdown of this Euro technical setup and more.

Euro Price Chart – EUR/USD Daily

Euro Price Chart - EUR/USD Daily - Euro vs US Dollar Trade Outlook - Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; EUR/USD on Tradingview

Technical Outlook: In my last Euro Price Outlook (late-June) we warned to, “be on the lookout for possible topside exhaustion while below the 1.20-handle with a break / close below 1.1824 needed to suggest a larger sell-off is underway.” Price registered a high at 1.1975 before turning sharply lower with EUR/USD plummeting more than 2.2% off that high. The decline is now approaching a key technical support zone at 1.1695-1.1704- a region defined by the 38.2% Fibonacci retracement of the 2020 advance & the objective yearly / March low and converges on channel support. Looking for possible price inflection off this zone with the immediate decline vulnerable while above- it’s make-or-break here with the next significant support zone seen at 1.1602/21 in event of the break.

Euro Price Chart – EUR/USD 240min

Euro Price Chart - EUR/USD 240min - Euro Trade Outlook - Technical Forecast

Notes: A closer look at Euro price action shows EUR/USD trading within a descending pitchfork formation extending off the late-June highs with the lower parallel further highlighting support at 1.1695-1.1704. Initial resistance now back at the yearly low-week close at 1.1760 with near-term bearish invalidation set to the weekly opening-range highs at 1.1801/07- a pivot there would expose 1.1831 with a breach / close above the objective monthly open at 1.1866 needed to suggest a larger reversal is underway.

Bottom line: Euro has once again plummeted towards key support at the yearly lows and while the medium-term risk remains lower, the immediate decline may be vulnerable while above 1.1695. From a trading standpoint, a good zone to reduce short-exposure / lower protective stops – look for topside exhaustion ahead of the median-line IF price is heading lower with a break lower exposing a more significant plunge towards the next major support zone at the November lows / 100% extension / October 2018 high at 1.1602/21. Review my latest Euro Weekly Price Outlook for an in-depth look at the longer-term EUR/USD technical trade levels.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Euro Trader Sentiment – EUR/USD Price Chart

Euro Trader Sentiment - EUR/USD Price Chart - Euro Retail Positioning - Technical Outlook
  • A summary of IG Client Sentiment shows traders are net-long EUR/USD - the ratio stands at +1.41 (58.45% of traders are long) – weak bearish reading
  • Long positions are 11.90% higher than yesterday and 10.62% lower from last week
  • Short positions are7.12% lower than yesterday and 12.31% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EUR/USD prices may continue to fall. Traders are more net-long than yesterday but less net-long from last week. The combination of current positioning and recent changes gives us a further mixed EUR/USD trading bias from a sentiment standpoint.

---

Key Euro / US Economic Data Releases

Key Euro / US Economic Calendar - EUR/USD Key Data Releases - Weekly Event Risk

Economic Calendar - latest economic developments and upcoming event risk

Active Technical Setups

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES