EUR/USD daily overview

16 Tem 2018

The previous trading week brought weakness to the EUR/USD exchange rate, with the pair losing 102 pips lower from its weekly high of 1.1780. In terms of today, the it was stranded between the strong bounds of the 200– and 55-hour SMAs.

It seems that the pair might be reluctant to push above the former at 1.17, as this level is likewise strengthened by the 100-hour and 55-period (4H) SMAs and the weekly PP. Thus, it is more likely that the rate continues to edge lower towards the weekly S1 at 1.16 during the first part of the day, at least. This bearish sentiment should nevertheless change within the following days, thus giving bulls the opportunity to retake their lost positions.

In case the aforementioned resistance is breached today, the Euro should target 1.1780.

17 Tem 2018

Not

Despite breaching the weekly PP and the 200-hour SMA to the upside early on Monday, the Euro failed to accelerate against its American counterpart and remained trading along this long-term moving average during the remaining session, as well.

It is likely that the nearest support cluster, likewise reinforced by the monthly PP and the 55– and 100-hour SMAs, provides an unbreakable barrier and thus guides the rate towards the weekly R1 at 1.1780.

By and large, a strong upside momentum should not exceed the pair’s one-month high of 1.18. Conversely, in case bears take over the market and breach the aforementioned support cluster, the next target for the Euro would be the weekly S1 at 1.16.

18 Tem 2018

Not

Downside risks have prevailed in the market since yesterday thus allowing the common European currency to decline 94 pips against the US Dollar. The currency pair managed to surpass the 55-, 100-, and 200– hour SMAs along the way but was unable to breached the bottom border of an ascending trendline.
According to technical indicators, some downside potential still exists in the market. In the meantime, the EUR/USD currency exchange rate could make a brief retracement north for a likely re-test of the aforementioned SMAs during the following trading session.

19 Tem 2018

Not

EUR/USD continued its decline during the first part of Wednesday’s trading session, thus adding additional 45 pips to the 90 pip fall apparent on the previous day.

This downside movement reversed north after the pair reaching the weekly S1 at 1.1605. The bottom boundary of the medium-term wedge was adjusted accordingly in order to include this price development.

By the time of this analysis, bulls have managed to push the rate close to the 55– and 100-hour SMAs; thus is expected that these lines are reached during the following hours.

Further advance is unlikely, given that the monthly PP at 1.1680 is likewise strengthened by the 100– and 200-period (4H) SMAs. This resistance cluster should increase downside risks and thus send the Euro lower towards 1.16. Technical indicators support this scenario.