Forex Marketz Daily Forex News – Fully Markets Update
Looking at the world’s most liquid currency exchange rate, the EUR/USD, the euro currency (EUR) on the above daily MT 4 price action chart has formed a new higher high for the week and higher low as well.
With this chart setup, the EUR/USD currency exchange rate should open the week on the cautious side with limited losses as well as limited upside potential. Forex traders will be watching the contested national election in the United States.
Even as more and more Republican lawmakers are starting to come to terms that President-elect Joe Biden will be the next President of the United States, President Donald Trump continues to be in denial.
He has refused to concede or accept the result of the election. His White House is also refusing to cooperate with the Biden transition team. Also of concern is that both Republican and Democratic lawmakers have yet to agree on any new fiscal stimulus as the coronavirus pandemic (Covid-19) appears to be out of control as new daily infections have set records.
The economic calendar, for Monday, is quiet. The United States will release the monthly Empire state manufacturing index. Germany’s central bank, the Bundesbank, will release their monthly report. Canada and the United Kingdom have no economic data scheduled for release.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the euro currency on the above EUR/USD MT 4 price chart, this Forex market continues to trade just above the short-term twenty (20) day simple moving average (SMA). The 20 day SMA is also above the one hundred and two hundred (100, 200) day simple moving averages. This is a good sign for euro buyers.
The momentum indicator, 14 day MACD histogram, lacks directional strength just above the mid-point. The 14 day relative strength index (RSI) has also turned lower. Both technical indicators show a lack of demand for this headline currency exchange rate.
With that said, the first resistance layer to monitor is within a congestion zone that lines up at 1.1910 to 1.1920. A daily close above this area opens the door to challenge the yearly high price point that comes into play at 1.1960.
On the downside, is the weekly low price point lining up at 1.1745. A daily close below this level brings a downside congestion zone in play at 1.1640 to 1.1640.
