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Euro Currency Recovers off a Monthly Low Price Point

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Looking at the euro currency (EUR) on the above EUR/USD daily MT 4 chart, the euro has recovered off a monthly low price point.

The EUR/USD Forex market is still trading above the two hundred and one hundred (200, 100) daily simple moving averages (SMA) and below the short term fifty (50) day simple moving average as price action remains to the downside as the new week begins.

Looking at the economic calendar for Monday, the European Union is not releasing any economic data. The United States will publish their monthly core and headline consumer price index (CPI) and the United Kingdom will see remarks from the Governor of the Bank of England Andrew Bailey and Monetary Policy Committee member Haskell.

With the lack of economic data on the calendar to start the week off, both the euro currency and the U.S. dollar could see price drifting. Headlines surrounding the stalled fiscal stimulus talks out of the United States could provide price volatility as well as continued Brexit drama.

Forex traders will also be watching coronavirus headlines as Berlin, and Paris have closed restaurants and pubs at night and Madrid has declared a state of emergency and new lockdown.

Daily Euro Technical Analysis (EUR/USD)                                     

Looking at the euro currency on the above daily MT 4 price chart, there is key psychological resistance lining up at the horizontal pivot at 1.18. This upside barrier is also supported by the fifty day simple moving average and is the October high price point.

The next upside barrier then lines up at the late September high price point in play at 1.1870. The August monthly high price point lining up at 1.1920 then comes into focus. Any sustained trading above 1.1920 brings the upside barriers lining up at 1.1965 and 1.2010 into play.

On the downside, the EUR/USD currency exchange rate notes the key psychological barrier at 1.17. The next downside barrier lines up at the September low price point in play at 1.1610. In this scenario, the next layers of technical support then line up at 1.1650 and 1.1530.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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