EUR/USD Post-FOMC Plunge Searches For Support

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

  • Euro up to date technical commerce ranges – Daily & Intraday Charts
  • EUR/USD plummets post-FOMC– month-to-month vary break retains give attention to assist simply decrease
  • Resistance 1.1186, 1.1221, 1.1263 (Key) – Support at 1.1109, 1.1050 & 1.1002 (Key)

Euro plunged towards the US Dollar on the heels of yesterday’s FOMC price determination with EUR/USD plummeting greater than 1.8% from the weekly open. The decline marks a breakout of the January vary and whereas additional losses are seemingly, the speedy sell-off could also be weak as worth approaches preliminary assist zones simply decrease. These are the up to date targets and invalidation ranges that matter on the EUR/USD technical worth charts heading into the shut of the week. Review my newest Strategy Webinar for an in-depth breakdown of this Euro technical setup and extra.

Euro Price Chart – EUR/USD Daily

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

Technical Outlook: Euro broke under confluent channel assist this week on the 61.8% Fibonacci retracement of the 2020 advance at 1.1290 – the decline additionally marks a breakout of the January opening-range with EUR/USD already down greater than 3% off the month-to-month highs. Can the depth of this Euro sell-off proceed?

While the technical harm has been accomplished, the speedy decline is now approaching areas of curiosity for potential draw back exhaustion. Initial assist rests at 1.1109 (2019 April / May pivot zone) backed by the decrease parallel (highlighted area close to ~1.1050s) and the 78.6% retracement at 1.1002on the lookout for a response into one in every of these ranges.

Euro Price Chart – EUR/USD 120min

Euro Price Chart - EUR/USD 120min - Euro vs US Dollar Trade Outlook - Technical Forecast

Notes: A more in-depth take a look at Euro worth motion exhibits EUR/USD buying and selling throughout the confines of an modified pitchfork formation extending off the highs with the current sell-off stalling right here on the median-line. Initial resistance now stands with the December lows at 1.1221 backed by the weekly opening-range low / higher parallel at 1.1263– rallies ought to be restricted to this slope IF worth is certainly heading decrease. Ultimately a topside breach / shut above the 1.1290 could be wanted to shift the broader focus greater once more with yearly open resistance seen at 1.1383.

Bottom line: The Euro breakdown has already prolonged in the direction of downslope assist and could also be a bit stretched right here. From at buying and selling standpoint, an excellent zone to scale back short-exposure / decrease protecting stops – recoveries ought to be capped by the higher parallels and we’ll be looking out for an exhaustion low within the weeks forward to supply extra favorable alternatives. Keep in thoughts we nonetheless have some main occasion danger on faucet nonetheless with US core inflation knowledge tomorrow and the ECB subsequent week. Review my newest Euro Weekly Price Outlook for an in-depth take a look at the longer-term EUR/USD technical commerce ranges.

For an entire breakdown of Michael’s buying and selling technique, overview his Foundations of Technical Analysis collection on Building a Trading Strategy

Euro Trader Sentiment – EUR/USD Price Chart

Euro Trader Sentiment - EUR/USD Price Chart - Euro vs US Dollar Retail Sentiment - Technical Outlook

  • A abstract of IG Client Sentiment exhibits merchants are net-long EUR/USD – the ratio stands at +2.16 (68.39% of merchants are lengthy) – sometimes bearish studying
  • Long positions are 9.92% greater than yesterday and 9.83% greater from final week
  • Short positions are13.88% decrease than yesterday and 21.97% decrease from final week
  • We sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests EUR/USD costs could proceed to fall. Traders are additional net-long than yesterday and final week, and the mixture of present positioning and up to date adjustments offers us a stronger EUR/USD-bearish contrarian buying and selling bias from a sentiment standpoint.

Key Euro / US Economic Data Releases

Euro US Economic Calendar - EUR/USD Weekly Event Risk

Economic Calendarnewest financial developments and upcoming occasion danger

Active Technical Setups

– Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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