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Euro Reverses Lower against the U.S. Dollar

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Looking at the benchmark EUR/USD currency exchange rate and above hourly MT 4 price action chart, the euro currency (EUR) is trading in a choppy price range above the key downside barrier lining up at 1.18.

The euro is also trading above the downside barrier in play at 1.1810. The EUR/USD Forex market surged to a fresh high price point since 2 September before falling lower from 1.1920.

Today both the Eurozone and Germany will publish their monthly private ZEW economic sentiment surveys. Italy and France will both publish monthly industrial production data. The United States will release their monthly JOLTS jobs openings.

The United Kingdom is publishing their monthly claimant count change as well as their monthly unemployment rate. The UK is also publishing their average monthly earnings change (3 month). They will also publish their monthly BRC retail sales monitor. Canada is not releasing any economic data today.

Daily Euro Currency Technical Analysis (EUR/USD)

Looking at the euro on the above price action chart, more closely, the one hundred (100) hour simple moving average (HMA) is acting as a downside barrier.

This downside congestion area comes into play at 1.18 to 1.1795. Looking at the MACD histogram, this technical indicator is signaling bearish price action for the EUR/USD currency exchange rate.

A daily close below the technical support level in play at 1.1795 will open the door to challenge the two hundred (200) simple hourly moving average that lines up at 1.1740. The next downside barrier then comes into play at 1.1720.

On the flip side, the EUR/USD needs to see a daily close back above 1.1860 in order to see a meaningful recovery. In this scenario, the next layer of technical resistance lines up at 1.1920.

The psychological and key layer of technical resistance in play at 1.20 then comes into focus. The next upside barrier lining up at the September high price point at 1.2010 then pops up on the radar.

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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