Following a test of a five-month ascending channel circa 1.2160, the common European currency was driven by strong upside potential. The pair advanced by 85 pips during the second part of Friday, but was once again stopped by the 23.60% Fibo retracement near 1.2350. As apparent on the chart, the Euro has failed to surpass this mark for the last seven trading sessions, thus setting a strong resistance level for the following sessions.
Meanwhile, a strong hourly plunge pushed the rate down to the 55-, 100– and 200-hour SMAs and the weekly PP near 1.2280 on Monday morning. It is likely that this area holds strong and therefore allows bulls to resume their movement towards the 1.2350/60 area.
Meanwhile, a strong hourly plunge pushed the rate down to the 55-, 100– and 200-hour SMAs and the weekly PP near 1.2280 on Monday morning. It is likely that this area holds strong and therefore allows bulls to resume their movement towards the 1.2350/60 area.
Comment:
The Asian session was relatively calm for EUR/USD on Tuesday. This lack of movement shifted significantly in favour of bulls mid-session when the rate surged 80 pips within a couple of hours. This surge was seemingly caused by uncertainty over global trade wars that weighted heavily on the US Dollar.
The Euro still managed to push higher in subsequent hours up to the monthly R1 at 1.2440; however, falling short from the upper boundary of the one-week channel up.
Even though technical indicators have been pushed in the overbought territory, they continue flashing bullish signals. Thus, the Euro might still approach the upper channel line of a six-week channel and the weekly R2 at 1.2480 before reversing to the downside.
A possible southern target for today is the 1.2360 mark.
The Asian session was relatively calm for EUR/USD on Tuesday. This lack of movement shifted significantly in favour of bulls mid-session when the rate surged 80 pips within a couple of hours. This surge was seemingly caused by uncertainty over global trade wars that weighted heavily on the US Dollar.
The Euro still managed to push higher in subsequent hours up to the monthly R1 at 1.2440; however, falling short from the upper boundary of the one-week channel up.
Even though technical indicators have been pushed in the overbought territory, they continue flashing bullish signals. Thus, the Euro might still approach the upper channel line of a six-week channel and the weekly R2 at 1.2480 before reversing to the downside.
A possible southern target for today is the 1.2360 mark.
Comment:
EUR/USD was trading in a short-term ascending channel for several sessions. This strong upside momentum, however, allayed significantly on Wednesday when the Euro approached the resistance of the monthly PP. The pair has since been trading sideways for the second consecutive session.
As apparent on the chart, it has not yet managed to reach the upper boundary of a six-week channel down. Thus, it is likely that the current period of consolidation is followed by a surge up to the 1.2470 mark during the remaining part of this week.
The Euro could remain stranded between the 55-hour SMA and the monthly R1 for several hours until upward pressure prevails in the market. ECB fundamentals, however, might introduce some changes to this scenario mid-session.
EUR/USD was trading in a short-term ascending channel for several sessions. This strong upside momentum, however, allayed significantly on Wednesday when the Euro approached the resistance of the monthly PP. The pair has since been trading sideways for the second consecutive session.
As apparent on the chart, it has not yet managed to reach the upper boundary of a six-week channel down. Thus, it is likely that the current period of consolidation is followed by a surge up to the 1.2470 mark during the remaining part of this week.
The Euro could remain stranded between the 55-hour SMA and the monthly R1 for several hours until upward pressure prevails in the market. ECB fundamentals, however, might introduce some changes to this scenario mid-session.
As previously expected, the combined support of the 55– and 200-hour SMAs and the weekly PP provided un unbreakable barrier circa 1.2280. This allowed bulls to take over the market and push the rate up to the 23.60% Fibo retracement at 1.2360. The Euro, however, remained reluctant to surpass the existing two-week resistance near 1.2350.
As apparent on the chart, the short-term ascending channel (drawn with dashed lines) has lost its bullish momentum.This suggests that a breakout south should occur during the following hours, thus sending the pair lower towards the 1.2280 area.
Given that the 55-hour SMA and the monthly PP are likewise located nearby, losses could be limited by near 1.23. From the upside, the weekly R1 at 1.24 is unlikely to surrender today.