EURUSD intermediate-term bullish shift

Intermediate
  • EURUSD saw a surge higher on Wednesday, primarily a reaction to an ongoing weakening US Dollar, as opposed to a particularly strong Euro.
  • US Dollar weakness has been a theme for early 2019, given the more dovish tone from the Fed from late 2018 and in particular from FOMC Chairman Jerome Powell.
  • The FOMC Minutes on Wednesday reinforced this dovish outlook and points to further weakness for the greenback in the short-term at least and aims EURUSD still higher.

EURUSD technical analysis outlook

We have stressed in our recent Market Chartist reports to our clients in early 2019 that “erratic early 2019 price action leaves an intermediate-term range theme defined as 1.1545 to 1.1268/62, BUT NOW with risks skewed towards an intermediate-term bull shift above 1.1545” and the Wednesday surge to probe above 1.1545 sets an intermediate-term bull theme.

Furthermore, this price action above 1.1545 has built on Monday’s firm advance above 1.1434 resistance, to keep the immediate risks higher for Thursday.

For Today:

  • We see an upside bias for 1.1570/80/81; break here aims for key 1.1621/25 and maybe then 1.1685.
  • But below 1.1507 opens risk down to 1.1444 and 1.1421.

 Intermediate-term Outlook – Upside Risks: We see an upside risk for 1.1621.

  • Higher targets would be 1.1815 and 1.2000.
  • What Changes This? Below 1.1308 shifts the outlook back to neutral; through 1.1268/62 is needed for a bear theme.

4 Hour EURUSD Chart

eurusd chart

Comments on this analysis


Latest News

Forex News Category
Will Fed Easing Turn Out Like ’95 or ‘07?

You should completely understand that the market is dangerously overvalued and that global economic growth has slowed to a crawl along with S&P 500 earnings. However, you must also be wondering when the massive overhang of unprecedented debt levels, artificial market manipulations, and the anemic economy will finally shock Wall Street to a brutal reality. … Continued

Gold Futures
Gold Getting a Boost as Fed Expresses Concern

As the Fed indicate rate cuts are coming gold will keep rising over the summer  There is a disconnect between asset price inflation and the real economy  Earnings will be flat or disappointing and too much debt has little or negative yield  I last looked at Gold on May 26, 2019 when I called for … Continued

Current Market Analysis
Market Turning Points – 2019-07-15

Current Position of the Market SPX: Long-term trend – Finallong-term phase on the way?  How much longer, is the question. Intermediate trend –  The continued strength has muddied the water and we may have to wait until August/September before the intermediate trend becomes more clear. Analysis of the short-term trend is done on a daily … Continued

Forex Videos
Fed Causes Dollar to reverse

Negatives for the Dollar lead to positives on Euro Pound hits major downside target perfectly Negative for Dollar Yen but profit target close Kiwi breaks up Fresh yearly lows for Dollar Cad


Forex Brokers in your location