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 the dip

A setback Monday below 1.1062 and 1.1027 supports, but to hold and start to rebound overnight into Tuesday from above the better support at 1.0951, to retain positive forces from Friday’s strong rally to overcome 1.1087 resistance after last Thursday’s push above key 1.1045 (for an intermediate-term shift from bearish to neutral), to keep the risk higher into Tuesday.

  • We see an upside bias for 1.1055; a break above aims for 1.1083 and 1.1147, maybe towards 1.1189.
  • But below 1.0981 quickly targets 1.0951, which we would look to try to hold. Below targets 1.0926 and 1.0890.

EURUSD intermediate-term outlook

The late March rally through1.1045 switched the intermediate-term bull trend to neutral; range seen as 1.1237 to 1.0782.

  • Upside risks: Above 1.1237 sets an intermediate-term bull trend for 1.1367 and 1.1496.
  • Downside risks: Below 1.0782 sets an intermediate-term bear trend for 1.0633 1.0500, 1.0340, maybe 1.0000.

Daily EURUSD Chart

EURUSD Chart 2020-03-31

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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