Euro Looks to Recover against the USD

On Friday, the euro currency (EUR) completed its fall of about 200 pips against the almighty U.S. dollar (USD). This could be a correction with the EUR/USD currency exchange rate as this Forex market remains bullish on the above daily MT 4 chart.

The euro currency is still trading above the one hundred and two hundred (100, 200) day moving averages. However, the EUR/USD Forex market has fallen below the short term twenty day moving average.

The economic calendar does not feature a lot of key macroeconomic events that will impact either the U.S. dollar or the euro currency. The European Union will release their monthly import price index. This includes the month to month and annual number.

Germany will release their monthly Buba report. The United States will see the Chicago Federal Reserve’s monthly economic activity index. The economic calendar for the United Kingdom has nothing scheduled.

Daily Euro Technical Analysis (EUR/USD)

Looking at the above daily EUR/USD price action chart, there are some bearish signals. This key Forex market has closed below the twenty (20) day moving average. However, the one hundred and two day moving averages are sloping higher which signals that losses could be short-lived.

Looking at the technical indicators, like the relative strength index (RSI) and the MACD histogram, both are moving lower but remain within neutral levels, for now.

With that said, the first layer of technical support lines up at the weekly low price point in play at 1.1710. A daily close below this first level of technical support will open the door to challenge the next downside barrier lining up at 1.1657.

A sustained close below this downside barrier shifts focus towards the downside congestion zone lining up at 1.15 to 1.1540.

On the flip side, the first upside barrier to note in the world’s most liquid Forex market lines up at 1.1870. A daily close above this first layer of technical resistance would bring the yearly high rice point of 1.1965 into focus.