Euro looks vulnerable to a further correction lower – EURUSD forecast

  • 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

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