During the past few weeks, the EUR/USD currency pair has been on the descending route of the chart which led to a resistant break in August by forex traders (buyers) without an increase in price. As at Friday’s close at 1.1620, the currency pair was still showing signs of resistance level and came at a stop at 1.1720/30 at the horizontal area.
This horizontal uptrend attracted sellers on Friday and almost completed a bearish on the same day. However, this is not the kind of close sort for by traders who seek for bullish EUR/USD currency pair. This currency pair has always lacked momentum since last May and even in the presence of the close at 1.1720/30 at the horizontal area, the case will remain exact. This move actually attracted an influx of buyers. As the currency pair chart stays at 1.1530 at the support level and 1.1720/30 and the resistant level, there will be more range-bound price action.
While the European central bank leaves its monitory policies untouched and doesn’t demote inflation forecast, the fed makes haste to raise the euro and pounds rates with a solid advance to tight monitory policies. This trade outcome (monitory policy divergence and political war) have a great tendency of pushing the EUR/USD currency pair down.
A RUNDOWN OF EUR/USD TECHNICAL ANALYSIS
In the week, the EUR/USD currency have been dynamic in nature with a lot of ups and downs. Based on technical analysis, the currency pair moved from a close at 1.650 level last week to increasing higher grounds. EUR/USD technical analysis highlights indicate that
- On June 14th, the currency pair was at a close peek of 1.1850 before the Euro was brought down by President Mario Draghi and encountered a swing high of 1.1795 in July.
- The level was maintained at 1.1750 for a period of four times in July.
- 1720 held down the currency pair in mid-September since it functions as a veteran line that worked in both directions. A swing low level of 1.1650 was portrayed by the pair in August which was followed by a level of 1.1635 the held the capped the currency pair in mid-August.
- A support level of 1.1580 was encountered by the EUR/USD pair during late-August while 1.1530 support level held the currency pair two times in August hence, distinguished as an important line. A 1.1435 level capped the currency pair (EUR/USD) when it was trading on the yearly lows.
- At mid-August and in June 2017, 1.1300 level held the currency pair down at several points in time.
Here, the technical confluence indicator portrays a one-month resistance 1 on the 1.1788 level where the currency pair battles. There is an addition of a Bolinger Band 4h-Upper, Bolinger Band 15m-Upper, Bolinger Band 4h-High, and the Bolinger Band 1h-High.
At the upside of 1.1825, there is a confluence Pivot Point that indicates the one-day resistance 1, the Pivot Point one-week resistance 2 and a one-hour upper Bolinger Band.
The high target placed above indicates the 1.1923 level which is seen as the Pivot Point one-week resistance 3.
The support level is at 1.1751 where a Fibonacci cluster of 38.2 one day occurs. The next close is seen at 1.1727 level with a convergence of Pivot Point one week-resistance 1, simple moving average of 10-14h, another simple moving average of 200-15m and a 61.8 percent one-day Fibonacci.