The Euro extends strong rebound after post-ECB failure at 2019 low (1.0926) and cracks 1.11 barrier in early European trading.
Near-term sentiment turned positive after initial dip after ECB’s decision was contained by 3 Sep yearly low and subsequent bounce was fueled by profit-taking.
President Trump’s strong criticism of Fed and very strong dollar that hurts US economy, contributed to fresh Euro’s rally.
Strong recovery left double-bottom (1.0926), broke above bear-trendline off 1.1214 top (1.1093) and currently pressuring important Fibo barrier at 1.1111 (38.2% of 1.1412/1.0925), with action being supported by rising daily momentum (attempting to break into positive territory) and 10/20/30DMA’s turned to bullish setup and starting to point up.
Fresh bulls need weekly close above 1.1111 pivot (which capped a number of attacks in the second half of August) to generate signal for recovery extension towards another significant barrier at 1.1142 (base of daily cloud spanned between 1.1142 and 1.1219 / 55DMA).
Broken 20DMA offers solid support at 1.1054 which needs to hold and keep fresh bulls in play.
On the other side, weekly chart shows larger downtrend intact, with current rally seen as positioning ahead of next key market event-Fed policy meeting next week.
Wide expectations for Fed rate cut by 25 basis points and fresh optimism over US/China trade talks, are expected to inflate dollar and put the single currency under renewed pressure.

Res: 1.1111; 1.1142; 1.1163; 1.1183
Sup: 1.1078; 1.1054; 1.1029; 1.1000



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

    1. R3 1.128
    2. R2 1.1184
    3. R1 1.112
  1. PP 1.1023
    1. S1 1.096
    2. S2 1.0863
    3. S3 1.0799


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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

AUD/USD extends recovery gains to 0.6850 despite China’s coronavirus harming risk-tone

AUD/USD stays on the front-foot while taking rounds to 0.6845 amid the initial Asian session on Friday. The pair recently reacted to the preliminary readings of the Commonwealth Bank (CBA) PMI details for January.


USD/JPY falls to fresh lows, correcting on WHO statement

USD/JPY has tumbled to print fresh lows since failing on the 110 handle, scoring 109.26 and meeting the 200-moving average on the four-hour chart.


Crypto Today: Bitcoin bears force critical

BTC/USD is currently trading at $8,400 (-3.40%) in the afternoon in U.S. hours, as markets bears break critical $8500 price mark, allowing for a wave of further downside pressure. 

Read more

XAU/USD bulls challenging 1573 resistance level

XAU/USD is trading in a bull trend above its main daily simple moving averages (SMAs). After rejecting the 1600 figure earlier in January, the metal has been consolidating near the $1560 per troy ounce.

Gold News

GBP/USD pressured toward 1.31 amid risk-off mood

GBP/USD is trading around 1.31, off the highs. Coronavirus headlines are sending traders to the safety of the US dollar. Speculation about the next BOE move is rife.


Forex Majors