Euro looks vulnerable to a further correction lower – EURUSD forecast

Intermediate
  • A more negative EURUSD tone for early September after a strong tone in late August and early September (primarily driven by a still broadly weak US Dollar).
  • With EURUSD touching 1.20 earlier this week, ECB members have been trying to “jawbone” the Euro back lower.
  • This has worked to an extent with a dip back lower, with risks for further losses in the very near term, though the intermediate-term outlook stays bullish,

EURUSD day trade outlook: Threat stay lower for key 1.1697/94 supports, despite bounce

A further sell-off on Thursday after Wednesday’s push through 1.1851 support, but to bounce from the u trendline/ channel support, from 1.1787, above 1.1754/53 supports, but whilst capped by 1.1878 resistance we still see risks lower for Friday.

Day trade setup

  • We see a downside bias for 1.1787 and 1.1754/53 supports; a break here aims for key 1.1697/94 supports and maybe 1.1641.
  • But above 1.1878 opens risk up to 1.1929 and possibly 1.1966.

EURUSD intermediate-term outlook

The early June rally above 1.1147 set an intermediate-term bull trend.

  • Upside risks: We see an intermediate-term bull trend for 1.2414.
  • What changes this: Below the 1.1697/94 support area switches the intermediate-term bull trend straight to bearish.
6 Hour EURUSD Chart
6 Hour EURUSD Chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comments on this analysis

Your email address will not be published. Required fields are marked *


Latest Related News

Euro aiming back up at 1.20 (EURUSD forecast)

A more positive EURUSD tone again through mid-September (as we highlighted in our report last week), having probed down and rebounded from just below important 1.1754/53 support (to reject a possible Head & Shoulders top pattern).The subsequent bounce has reflected resurfacing US Dollar vulnerability since Wednesday’s Fed meeting (with a dovish tone from the FOMC).Furthermore, with stock averages trying to rebound and move back to… Continued

Stocks erratic, searching for direction; Pound plunges

Macroeconomic/ geopolitical developments A solid start to last week for risk assets as European and Asian stocks staged rebounds with US markets closed for the Labour Day HolidayHowever, riskier assets turned south again Tuesday and traded heavy for much of last week (see the “Global financial market developments” section below for details.At the start of the week, UK Prime Minister Boris Johnson placed a 15th… Continued

Pound collapses!

Dollar Index fails to break up - DXY forecastEuro holds support - EURUSD forecastPound collapses and breaks below weekly support - GBPUSD forecastEuroPound accelerates higher - EURGBP forecast Continued

Mixed US Dollar signals

Dollar Index posts positive, but fails to break up (DXY forecast)Euro posts major negative but has not yet broken down  (EURUSD forecast)Aussie reaches major monthly upside target and reverses  (AUDUSD forecast) Continued

EURUSD Top looks Compelling | Eyes on 21-EMA @ 1.1816

A top in EUR/USD is looking a lot more compelling now after a pathetic spike through 1.20 quickly fizzled out. Typically, the breach of a key psychological level which contains a wealth of option barriers and triggers is exaggerated, but with expectations of this break running high for weeks, mkts were able to hedge and prepare for such a scenario, in turn spurring profit taking… Continued

Forex Brokers in your location


SIGN UP

79% of retail investor accounts lose money


SIGN UP

78,6% of retail investor accounts lose money


SIGN UP

74,9% of retail investor accounts lose.


SIGN UP

73,9% of retail investor accounts lose.