EUR/USD daily overview

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The last two trading days were beneficial for the EUR/USD exchange rate, with it edging 1.36% higher. During this time, the pair surpassed the 55-, 100– and 200-hour SMAs and breached a two-week channel down. This bullish sentiment was strengthened on Friday following the US President Donald Trump’s comments of the strong US Dollar.

By Monday morning, the Euro had reached the combined resistance of the 23.60% Fibonacci retracement, a trend-line and the weekly R1 in the 1.1760/1.1800 range. Technical indicators flash bearish signals, demonstrating that the rate should respect this cluster and move lower.

Given that no important fundamental releases are scheduled today, it is unlikely that the 1.1680 mark is breached due to various SMAs located there.

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ملاحظة

As expected, the European common currency weakened against the US Dollar on Tuesday, pressured lower by the 23.60% Fibonacci retracement and a trend-line near 1.1760.

By Tuesday morning, the pair had returned near 1.1680 and was testing a strong support cluster formed by the weekly PP and the 55-, 100– and 200-period SMAs on the 1H and 4H time-frames.

If this significant support is breached, it should work as a strong bearish signal that should send the Euro down to the bottom trend-line and the weekly S1 at 1.1615 this week. Technical indicators are more in favour of this fall.

In case the aforementioned support remains intact, the next target would be the 1.1750 area or the weekly R1 at 1.1785.