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Euro Breaks above the 1.1830 Price Point

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Looking at the euro currency (EUR) on the above four (4) hour EUR/USD MT 4 price chart, prices action is trading above 1.1830 during the early Asian trade session on Wednesday.

The euro gained momentum after breaking above a falling trend line in play since 15 September. This happened on Tuesday. However, the relative strength index (RSI) is indicating overbought conditions at this price altitude.

The European Union has a quiet economic calendar with no scheduled data releases. The United States will be publishing weekly crude oil inventories. Two members of the Federal Reserve Board, and voting members of their Federal Open Market Committee (FOMC), Dr. Loretta Mester and Dr. Lael Brainard are speaking today.

The United Kingdom is releasing key inflation data. This is their monthly core and headline consumer price index (CPI). Britain is also publishing monthly factory gate prices. This is known as the producer price index. Canada is also publishing their monthly core and headline consumer price index (CPI) as well as monthly housing price index (HPI) data.

Daily Euro Currency Technical Analysis (EUR/USD)            

Looking more closely at the above EUR/USD price action chart, the euro currency notes near term technical resistance lining up at 1.1840. A daily close above this upside barrier will open the door to challenge the September monthly low price point in play at 1.1860.

Any sustained close above 1.1860 will bring the key upside barrier lining up at 1.19 into focus. In this scenario, the upside barrier lining up at 1.1920 then comes on the radar.

On the other side, the first downside barrier is at a short term rising trend line in play at 1.1810. A daily close below this trend line will bring the former upside and now technical support level at 1.18 into focus. Below 1.18 brings the former monthly support line that lines up at 1.1710 into focus.

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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