Looking at the headline EUR/USD currency exchange rate and above daily MT 4 chart, the euro currency (EUR) might still have some gas in the tank. This Forex market is trading above 1.1740 and just above the key level of 1.18.
The EUR/USD Forex market is also trading above all three key daily moving averages. The twenty (20) day moving average had surpassed the one hundred day (100) day moving average (DMA) which has crossed above the longer term two hundred (200) day moving average.
This week’s economic calendar starts off rather quietly. The European Union has no macroeconomic data scheduled to be released. This will do nothing for price volatility for the euro currency. However, the monthly Euro Group meeting will start off during the day.
The United States is releasing minor monthly housing data. The private NAHB monthly housing index will cross the wires. The economic calendar out of the United Kingdom is also quiet.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at price action on the above daily MT 4 chart, the technical indicators are starting to signal overbought conditions which could lead to exhaustion with the euro at this price level. With that said, the EUR/USD currency exchange rate is trading above the 20 day moving average which is sloping higher.
However, the MACD histogram is moving towards 100 which indicates an overbought trend and the relative strength index (RSI) is also moving lower. Forex traders are simply waiting on a catalyst to spark price action.
The layer of technical support lines up at 1.1710. A daily close below this first layer of support opens the door to challenge the next downside barrier in plat at 1.1635. A sustained close below this support level opens the door to challenge the key downside barrier in play at 1.15.
On the flip side, the first upside barrier lines up at 1.1863. The next layer of technical resistance comes into play at 1.1915 with the key upside barrier lining up at 1.20 then coming into focus.