Fresh advance in early European trading on Thursday probes again through cracked 200DMA barrier, offsetting, for now, negative signals from Wednesday’s strong upside rejection that left bearish daily candle with long upper shadow and repeated failure to close above 200DMA.

The picture on daily chart is slightly bullish but signals are still mixed, with Fed’s cautious approach to its policy and signals that no changes in the policy or reducing current bond purchases could be expected anytime soon, deflating dollar and giving a fresh boost to the single currency.

On the other side, concerns about Astra Zeneca’s vaccine continue to weigh and keep the action limited for now.

Daily studies show rising momentum but overbought stochastic while headwinds from 200DMA persist as falling 30DMA is on course to form bear cross with 200DMA and reinforce resistance.

Near-term action is expected to keep slight bullish bias above 20DMA (1.1846), but caution on potential third failure to close above 200DM that would increase risk of pullback.

Res: 1.1914; 1.1946; 1.1990; 1.2000.
Sup: 1.1860; 1.1846; 1.1812; 1.1798.


Interested in EUR/USD technicals? Check out the key levels

    1. R3 1.1955
    2. R2 1.1935
    3. R1 1.1901
  1. PP 1.1881
    1. S1 1.1847
    2. S2 1.1827
    3. S3 1.1793

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD falls toward 1.20 as the dollar gains further ground

EUR/USD is under pressure as the dollar gains ground across the board, amid a damp market mood. The euro fails to benefit from the European regulators' decision to reinstate the J&J vaccine.


GBP/USD remains pressured below 1.3950 amid mixed UK data

GBP/USD is trading below 1.3950, extending the pullback from its seven-week highs. The dollar benefits from the risk-off mood, while the pound struggles after CPI missed with 0.7% and as UK PM Johnson warns of winter covid wave.


Gold likely to face stiff resistance near $1795-$1800, focus on yields

Gold (XAU/USD) rebounded on Tuesday as the US Treasury yields tumbled alongside global stocks. Surging covid infections globally brought a reality check into the markets and triggered a fresh risk-aversion wave.

Gold News

Binance needs to breach this crucial supply barrier to set up record levels again

Binance Coin price shows a short-term rejection around the supply zone’s upper layer at $594.32. A close above the said level is a must if BNB bulls want to scale to new highs. Supply distribution shows that whales holding between 100,000 to 1,000,000 BNB are accumulating.

Read more

Bank of Canada Preview: Dovish surprise to lift USD/CAD

Bank of Canada is expected to leave its policy unchanged at 0.25%. Investors await adjustments to BoC’s asset-buying program. USD/CAD is likely to react more significantly to a dovish surprise.

Read more