Euro stays firm (EURUSD)

Intermediate
  • The US Dollar remains on the backfoot across major currencies (apart from the safe-haven Japanese Yen), with the USD weakening due to a global “risk on” scenario and with ongoing anticipation of further easing from the US Federal Reserve into latter 2019.
  • Alongside this US Dollar weakness, the Euro has advances on growing hopes and anticipation of a Brexit deal over the past week.
  • The combination of these factors has pushed EURUSD up towards a key level, as outlined below.

EURUSD: Bull threat to key 1.1110

A strong advance Wednesday through 1.1063 and 1.1082 resistances to build on Tuesday’s dip and a rebound from just below our 1.1000 support level (from 1.0989) to sustain upside forces from the entire October advance, to keep risks higher for Thursday.

The late August selloff through 1.1025 shifted the intermediate-term outlook to bearish, BUT with risks growing for an intermediate-term shift to bullish above 1.1110.

For Today:

  • We see an upside bias for 1.1084; break here aims for key 1.1110 and maybe 1.1164.
  • But below 1.1045 aims for 1.0989/82 and maybe opens risk down towards 1.0959

Intermediate-term Outlook – Downside Risks: We see a downside risk for 1.0839 and 1.0578.

  • What Changes This? Above 1.1110 shifts the intermediate-term outlook straight back to a bull theme.

4 Hour EURUSD Chart

EURUSD Chart

Steve Miley

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Your email address will not be published.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 *


Forex Brokers in your location