- EUR/USD bulls eye last week's high as an imminent target.
- The bears will be looking for a peak in this daily correction.
EUR/USD is within a broadening formation in a softer US dollar environment at the start of the week. The pair is attempting to move higher with last week's highs near 0.9850 in focus, 100 pips above this week's low so far. A break of the prior week's highs will open the risk of a move to test 0.9900 with 0.9950 resistance on the cards thereafter. On the flip side, 0.9750 guards a run to 0.9650:
EUR/USD H1 chart
EUR/USD daily chart
The price has corrected a significant portion of the prior bearish impulse on the daily chart and is targeting the neckline of the M-formation as illustrated above. This has a confluence with the 61.8% golden ratio near 0.9850. Resistance guards a leg higher to 0.9950 and around a 78.6% Fibo. Should the US dollar and yields eventually firm, perhaps on a blockbuster job report at the end of the week, then the volumes of orders left behind any potential grind higher could be bate for the bears as illustrated on the chart above.
DXY H1 chart
The US dollar, as measured by the DXY index vs. a basket of currencies is under pressure within a key area that otherwise guards against a full-blown sell-off below 111.50. The harmonic pattern is bullish, but the bulls must commit in the coming sessions.
US 10-yr yield
The US 10-year yield is also under pressure while below over head resistance around a 61.8% retracement area near 3.700%.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds gains near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold price defends gains below $2,400 as geopolitical risks linger
Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.