Euro still bullish against the US Dollar (EURUSD forecast)

Intermediate
  • With US yields moving to record lows recently, the US Dollar remains weak.
  • The US continues to struggle with significantly rising COVID-19 cases, with the pockets of rising cases in Europe not seen as negative.
  • In addition, the EU recovery fund has been agreed, whilst US lawmakers are still debating the next course of fiscal stimulus.
  • This leaves the threat for further EURUSD gains today and for August.

EURUSD day trade outlook: Bullish bias

A firm, impulsive rally on Wednesday through 1.1851/53 resistances to build on Tuesday’s resilient consolidation after Monday’s setback to just prod below 1.1697 support and bounce from 1.1694 support, to resume the positive tone from the late July surge through the key 1.1815 and 1.1852 peaks from September and June 2018 respectively to a new cycle high at 1.1909, to keep the risk higher into Thursday. 

Day trade setup

  • We see an upside bias for 1.1909; a break here aims maybe towards 1.1952 and maybe key 1.1996/1.2000.
  • But below 1.1798 opens risk down to 1.1697/94 and possibly 1.1641.

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 1.1996/1.2000 and 1.2414
  • What changes this: Below 1.1539 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

Comment on this video

Your email address will not be published.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

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… 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.