EUR/USD Price Analysis: Bulls run into resistance, bears eye trendline resistance

FX

Share:

  • EUR/USD bulls eye higher highs but a correction could be on the cards. 
  • Bears eye a correction to test trendline support.

The euro surged into the 1.0970 mark vs. the US Dollar on Friday, reaching its strongest level since May, following the European Central Bank’s decision to raise interest rates for the eighth consecutive time earlier in the week. There was also a signal that future rate hikes were on the table, leaving scope for higher highs in the pair:

EUR/USD weekly chart

The market has run into the weekly neckline of the M-formation. This leaves prospects of a correction but it has been a solid drive higher, so there is momentum in this bullish impulse and we could be headed for higher highs still. 

EUR/USD daily chart

We have possible stops above the swing highs that have been left intact, so far. Before a move higher into them, a drive to the downside could be in order first. This brings the 38.2% Fibonacci of the bullish impulse on the daily chart into focus and trendline support. 

Articles You May Like

Attack the currency trend: The EURUSD has been stepping lower with more selling today
Sterling Gains Slightly as UK Inflation Accelerates; Euro Struggles Despite Wage Surge
Sentiment Stabilization Reverses Yen Gains and Halts Gold’s Rebound
Market Trading Guide: LTIMindtree, Tata Motors are among 5 stock recommendations for Monday
Geo-political tension remains a strong tailwind for gold. Buy yellow metal on dips

Leave a Reply

Your email address will not be published. Required fields are marked *