Euro topping pattern leaves bias lower – EURUSD Forecast

Intermediate
  • Concerns regarding fresh outbreaks and a possible second wave of the COVID-19 coronavirus globally have seen Forex markets stay in more of a “risk off” phase since the middle of last week.
  • This is alongside a more negative risk outlook since last Wednesday’s Fed meeting, in which their assessment for the US economy was more pessimistic than financial markets have likely priced in.
  • This has left the US Dollar in a stronger position, as a safe haven, flight to quality currency, and here we look at the EURUSD forecast for today and June.

EURUSD day trade outlook: Intermediate-term shift to a broader range

A Monday selloff to surrender key 2965.5, for an intermediate-term shift from bullish back to neutral, for a still more significant topping pattern and despite a strong rebound whilst below 3118.25 we hold onto a more negative short-term tone, to aim lower again into Tuesday.

·      We see a downside bias for 3060.25 and 3031.0; below here aims for 2995.5 and 2955/52, maybe 2923.75.

·      But above 3118.25 aims for 3145/48; above here opens risk up to 3180.75 and possibly the cycle high at 3231.25.

EURUSD intermediate-term outlook

The mid-June push below 2965.5 signalled an intermediate-term shift to a broader range seen as 2760.25 to 3180.75.

  • Downside risks: Below 2760.25 sets an intermediate-term bear trend to target 2620.75, 2424.75 and maybe 2174.0.
  • Upside risks: Above 3180.75 sets an intermediate-term bull trend to target 3397.5 maybe 3500.0

4 Hour 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

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