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Euro Currency Remains at the Mercy of the Greenback


The euro currency began the current year (2021) trading at 1.2240 against the U.S. dollar. The EUR/USD Forex pair then, by November, hit a low price point of 1.1185.

As we head into this year’s final trade week, the shared currency is closer to the yearly low of than the high price point of 1.2349. In March 2020, the EUR/USD was at its low of 1.0635.

Also of note, there is strong upside resistance at the 61.8 percent Fibonacci level near 1.1288. The euro has struggled there quite a bit. This could bring this Forex market lower to channel the bottom of the above mentioned range 

Monday’s economic calendar is very light many Western markets remain closed for the Christmas holiday. The United States, United Kingdom or European Union will not publish any top tier economic data.

Daily Euro Currency Technical Analysis (EUR/USD)

Looking at the above monthly MT 4 price action chart, the technical indicators are flat to bearish within negative levels, near oversold. There are also no concrete technical signs keeping the EUR/USD Forex pair from correcting higher. Price action is below the key long-term simple moving averages.

The euro currency has broken below a long-term falling trend line in play since the all-time high of 1.6036 reach at the end of 2020. Since then, the EUR/USD Forex pair has failed to close back above it. The 23.6 percent Fibonacci level is also near, which could reinforce the bulls into next year.

The benchmark EUR/USD Forex pair has been falling, more or less, in a straight line since May of this year. The single currency also looks oversold but could continue moving lower against the greenback. A daily close below 1.12 could bring the sellers into this currency market.

However, on the upside, a daily close above the key static resistance congestion zone at 1.1460 to 1.1470 could bring the EUR/USD buyers back into the game. The 38.2 percent Fibonacci level is near 1.1690. A sustained close above 1.1690 paves the way for 1.20 then 1.24 comes 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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