Looking at the world’s most liquid currency exchange rate on the above daily MT 4 chart, the euro currency (EUR) has formed a Doji candlestick pattern against the U.S. dollar (USD). The EUR/USD currency exchange rate is looking for direction and ended the previous trading day, Thursday on a flat note.
The economic calendar, for Friday, is not very full. The United States will publish key monthly core and headline durable goods orders. The European Union is publishing monthly M3 money supply data as well as their monthly private loans data (annualized basis).
The United Kingdom will release their monthly public sector borrowing data. Canada has no macroeconomic data scheduled to be released as the week comes to an end.
Forex traders are watching political drama in the United States closely. President Donald Trump, the incumbent, has not committed to a peaceful transfer of power in November should he lose. Members of his political party, the GOP Republican Party as well as the Democratic Party have strongly condemned his attack on the basic foundation of a democratic government.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at price action on the above EUR/USD daily price chart, the euro currency has formed a Doji candlestick. This represents indecision with traders but the overall price trend remains to the downside in this key Forex market. This could be a signal that the bears are nearing exhaustion and the euro currency could start to consolidate before making another move in either direction.
Other indicators point to a further bearish bias. The short term five and ten (5, 10) day simple moving averages (SMA) continue to trend downwards and the relative strength index (RSI) is trending lower from the mid-line.
With that said, the bearish breakdown of the head and shoulders pattern, confirmed mid-week, remains in play. The EUR/IUSD currency rate is still trading below the former support now upside barrier in play at the 3 August low price point at 1.1696.
The first layer of technical support to monitor is in play at 1.1627, which is the low price point set on Thursday. The next layer of technical support lines up at the 9 March high price point at 1.1495.
On the upside the first layer of technical resistance lines up at the 3 August low price point at 1.1695. The ten day simple moving average then comes into play at 1.1768.