- 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.