Weekly technical outlook, by Liviu Flesar
EURUSD
The Euro recovered some of its losses versus the dollar during the previous week, extending its gains above 1.2000 right after the Dollar pushed lower, testing the key support at 1.1900. The resistance at 1.2180 was strong enough to trigger a reverse, event encouraged also by the data released in the US at the end of the week. The market sentiment remains bearish on the long term charts but moderately bullish on dailies. Even though the market was quiet during the Asian session, extending the lack of volatility during the European session, a noticeable move broke the support level at 1.2070 putting the dollar into an encouraging scenario once again.
On the other hand, while the 1.2040 level holds, being also the half resistance of the previous week upward move, we can expect a reverse followed by a new 1.2200 test. A succesfull breakout at 1.2190 may re-establish the EUR bullishness on the long term charts though. Such breakout will point towards 1.2245 which is the mid retracement of 1.2580-1.1900, the downward move which occured during September.
If the current move will extend through 1.2000 then we can expect a fresh test one figure lower, at 1.1900. Support is now seen at 1.2000 and 1.1900. Resistance stands at 1.2070 and 1.2190. Further resistance occurs at 1.2240 and 1.2340.
Despite today’s holiday in the US, the upcoming days will bring important data and noteworthy speeches by Fed officials.
EURUSD 4 hr chart:
