Euro now plunges, whilst US Dollar stays strong – EURUSD Forecast

Intermediate
  • An aggressive selloff by EURUSD over the past 24 hours, primarily reflecting US Dollar strength, with a thirst for the US currency given a funding and liquidity panic, plus as a safe haven in these times of crisis.
  • The global US Dollar shortage has seen the US currency rallying against the usual, go to safe haven, the Japanese Yen.
  • EURUSD is now poised at a key support, as highlighted below.

EURUSD day trade outlook: Bear threat to key 1.0949

A plunge lower Tuesday through numerous supports as low as 1.0988, to then hold just above key 1.0949 (at 1.0952), to thereby reinforce negative pressures from last week’s plunge through 1.1094 support (for an intermediate-term shift to neutral from bullish), to keep the bias lower for Wednesday.

  • We see a downside bias for 1.0982, 1.0952 and key 1.0949; a break below aims for 1.0901, then maybe 1.0853.
  • But above 1.1080/90 targets 1.1145, which we would look to try to cap; above opens risk up towards 1.1189.

EURUSD intermediate-term outlook

The mid-March selloff through key 1.1094 signalled an intermediate-term shift to a range, seen as 1.0949 to 1.1496.

  • Upside risks: Above 1.1496 see an intermediate-term bull trend to aim for 1.1570/1.1621 and 1.1852
  • Downside risks Below 1.0949 sees an intermediate-term shift to bearish for 1.0853 and 1.0776.

Daily EURUSD Chart

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Your email address will not be published.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

Markets calming, consolidation themes

Macroeconomic/ geopolitical developments Relatively speaking, compared to the chaotic developments throughout March, the end of the month and move into the second quarter and April, has seen a lack of significant developments on the geopolitical side.Yes, the COVID-19 coronavirus continues to spread globally, with the current epicentre shifting to the US, but still with cases and deaths on the rise in Europe. Practically all European… Continued

US Dollar stays firm, aiming higher

Pound respects major resistance (GBPUSD)Euro breaks down (EURUSD)Positives appear in Dollar-Yen, as it de-correlates from equities (USDJPY) Continued

Euro recovery theme intact, despite dip

A Euro dip versus the US Dollar to start the week, after EURUSD surged back higher last week.EURUSD has recouped much of the loss sustained through mid-March, during the panic buying of US Dollars.Despite this week’s early dip, we see this as corrective for now and see an upside theme resuming today, aiming EURUSD back higher. EURUSD day trade outlook: Looking for a rebound after… Continued

Corrective moves for stocks and the US Dollar

Macroeconomic/ geopolitical developments The COVID-19 coronavirus continues to spread globally, with the current epicentre still in Europe, but quickly shifting to the US. The British Prime Minister, Boris Johnson and Heath Secretary Matt Hancock have both tested positive for coronavirus (though symptoms are understood to be mild).The surge in cases in New York and the tri-state area of New York, New Jersey and Connecticut has… Continued

Dollar reverses, breaks key support (DXY)

Euro breaks up (EURUSD)Pound hits major resistance (GBPUSD)Dollar-Yen refuses to rise with equities (USDJPY) Continued

Forex Brokers in your location