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Euro Currency Trades below the 20 Day SMA


The euro currency is trading quietly just under the short-term twenty (20) day simple moving average vs the U.S. dollar headed into Thursday. The benchmark EUR/USD currency exchange rate has seen four day of gains since hitting a new yearly low price point.

Overnight, monthly U.S. durable goods orders were disappointing. There is also negative headlines hurting sentiment out of Afghanistan helping the greenback and capping gains for the sentiment linked euro. 

Top U.S. Health Official Anthony Fauci hopes to get the global coronavirus pandemic under control if more vaccinations occur.  There is also news that other coronavirus vaccines could soon receive full Food and Drug Administration (FDA) approval.

Today, the U.S. Federal Reserve will begin their annual Jackson Hole economic symposium in an online virtual format due to Delta coronavirus concerns. The U.S. Labor Department is releasing weekly initial and continuing jobless claims. The monthly U.S. core PCE price inflator will be published. Germany will see the private Gfk business survey released and France will publish their monthly business survey.

Daily Euro Currency Technical Analysis (EUR/USD)

Looking at the above daily EUR/USD MT 4 price action chart, the euro currency is being capped by the 20 day simple moving average. The 14 day relative strength index (RSI) is also looking bearish as price action remains below 1.18.

On the upside, immediate upside resistance lines up at the 20 day simple moving average near 1.1775. There is a descending trend line in play since 1 June at 1.1785 with 1.18 then coming into focus. A daily close above 1.18, the next upside level comes into focus at 1.1805, then 1.19 pops onto the scene.

There is immediate technical support lining up at 1.17. This is key horizontal support level. A daily close below 1.17 opens the door for the monthly low price point. This downside level comes into play within a congestion at 1.1660 to 1.1665.

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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