EUR/USD: Buyers to target daily resistance?
Europe’s single currency wrapped up the week on the ropes versus its US counterpart, shedding -0.2% and snapping a five-week bullish phase. Month to date, EUR/USD is up +1.7% and poised to end the month trimming a four-month losing streak.
Monthly/daily flow supports short-term bid
Bolstered by Friday’s rebound from trendline resistance-turned-support on the daily chart, taken from the high of $1.1139, as well as the immediate (daily) uptrend and the monthly timeframe showing no obvious resistance hindering buyers on the daily until reaching $1.0883 resistance (closely shadowed by another layer of daily resistance at $1.0920), buyers could be at the wheel this week. Nevertheless, a caveat to consider, albeit unlikely to influence a push higher this week, is that the monthly timeframe shows a clear long-term downtrend still in play.
H1 support on the radar
Interestingly, the technical position on the H1 timeframe reveals price ended the week testing a trendline resistance-turned-potential-support, etched from the high of $1.0885. Theoretically, given daily flow exhibiting scope to explore higher terrain in a trending market (and limited resistance impeding things on the monthly chart), this descending line may deliver a floor in early trading, with traders targeting daily resistance at $1.0883. Failure to rebound from the H1 line, however, H1 support between $1.0818 and $1.0822 may be tested and offer traders cheaper prices to bid from.
Author
Aaron Hill
FP Markets
After completing his Bachelor’s degree in English and Creative Writing in the UK, and subsequently spending a handful of years teaching English as a foreign language teacher around Asia, Aaron was introduced to financial trading,
