EUR/USD Price Analysis: Bulls on track for test of 1.2110 while above1.2050's


  • EUR/USD bulls have been in control in a strong hourly to resistance.
  • A 38.2% Fibo retracement of the hourly impulse could be on the cards before advancement to 1.2110. 

As per this week's, The Watchlist: GBP/JPY, EUR/USD, CHF/JPY and more setups in the making, the euro is making upside progress to complete a significant correction of the M-formation's bearish leg.

The week started off favourably for the US dollar but a snapback in US Treasury yields is enabling recovery in the forex space which plays into the hands of the euro bulls. 

This exposes the neckline of the M-formation and target of 1.2110.

Prior analysis, daily chart

The M-formation is a bullish pattern where the price would be expected to revert back to test the neckline and prior support, or, to at least the 38.2% Fibonacci level. 

Live market, daily chart

Live market, hourly chart

The hourly conditions are highly bullish with the 10 SMA crossing up the 21 SMA and MACD turning positive, albeit lagging the recent rally in the price to resistance.

Therefore, a pullback can be expected to test prior resistance and the confluence of the 38.2% Fibonacci retracement.

If the bulls commit at that juncture, then an advance to the neckline of the daily chart's M-formation is a high probability to complete a 50% mean reversion of the latest bearish leg. 

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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD on the back foot above 1.1950 amid tepid mood

EUR/USD trades on the back foot above 1.1950, consolidating the corrective pullback. Fears of delay in economic recovery magnified on downbeat vaccine updates, Geopolitical tensions also weigh on sentiment. US Michigan Consumer Sentiment Index in focus.

EUR/USD News

GBP/USD slips below 1.3750 amid USD bounce, Brexit concerns

GBP/USD remains pressured towards 1.3700, as the US dollar bounces amid a downbeat market mood. Covid vaccine concerns and unresolved Brexit border issues continue to undermine the pound. US Consumer Sentiment data awaited. 

GBP/USD News

Ripple bulls plan comeback with 30% rally

XRP price could surge 30% after a bounce from an ascending parallel channel’s lower trend line. Resetting social sentiment and funding rates provide a tailwind to the bullish thesis. A bearish scenario could come into play if sellers slice through the channel’s lower boundary at $1.70.

Read more

XAU/USD consolidates in a range just below multi-week tops

Gold was seen oscillating in a narrow trading band through the Asian session on Friday. Rebounding US bond yields underpinned the USD and capped the upside for the metal. Expectations for ultra-low interest rates, inflationary concerns should help limit losses.

Gold News

The pause that refreshes: Are currency markets hesitant to run with US data?

Recent American economic results have been exceptional. Payrolls, Retail Sales, and even Initial Jobless Claims, show recovery in full swing.  But the dollar topped out against the euro and the yen two weeks ago even as US data has blossomed.

Read more

Forex MAJORS

Cryptocurrencies

Signatures