EUR/USD Price Analysis: Consolidates near two-week high, setup favours bullish traders

EUR/USD consolidates Thursday’s strong move up to over a two-week high.
Acceptance above the 1.0745-50 confluence hurdle favours bullish traders.
A convincing beak below the 1.0700 mark will negate the positive outlook.

Haresh Menghani FXStreet

The EUR/USD pair is seen consolidating the previous day's strong gains to over a two-week high and oscillating in a narrow trading band through the Asian session on Friday. Spot prices currently trade around the 1.0775-1.0780 region and seem poised to build on the recent bounce from the 1.0635 region, or the lowest level since March 20 touched last week.

The overnight sharp rise confirms a breakout through the 1.0745 confluence - comprising the 100-period Simple Moving Average (SMA), the 23.6% Fibonacci retracement level of the downfall witnessed in May and a short-term descending trend-line. This, in turn, favours bullish traders and supports prospects for a further near-term appreciating move. That said, technical indicators on the daily chart - though have recovered from the negative territory - are yet to confirm a bullish outlook. Hence, any subsequent move up is more likely to confront some resistance near the 1.0800 round-figure mark, representing the 38.2% Fibo. level.

Some follow-through buying, however, will set the stage for additional gains and lift the EUR/USD pair to the next relevant hurdle near the 1.0860 region. The latter represents the 200-period SMA on the 4-hour chart and the 50% Fibo. level, which if cleared decisively will suggest that the recent pullback from over a one-year high touched in May has run its course. Spot prices might then aim to surpass the 1.0900 round figure and test the 61.8% Fibo. level, around the 1.0915-1.0920 zone.

On the flip side, the 1.0750-1.0745 confluence resistance breakpoint now seems to protect the immediate downside ahead of the 1.0700 mark. This is closely followed by an upward sloping trend-line, currently pegged near the 1.0680 region, below which the EUR/USD pair could slide back towards the May monthly swing low, around the 1.0635 area. Some follow-through selling will be seen as a fresh trigger for bearish traders and drag spot prices below the 1.0600 mark, towards testing the 1.0540-1.0535 intermediate support en route to the 1.0500 psychological mark.

EUR/USD 4-hour chart

Key levels to watch

EUR/USD

Overview
Today last price	1.0778
Today Daily Change	-0.0004
Today Daily Change %	-0.04
Today daily open	1.0782

Trends
Daily SMA20	1.0764
Daily SMA50	1.0887
Daily SMA100	1.0809
Daily SMA200	1.0516

Levels
Previous Daily High	1.0787
Previous Daily Low	1.0696
Previous Weekly High	1.0779
Previous Weekly Low	1.0635
Previous Monthly High	1.1092
Previous Monthly Low	1.0635
Daily Fibonacci 38.2%	1.0752
Daily Fibonacci 61.8%	1.0731
Daily Pivot Point S1	1.0723
Daily Pivot Point S2	1.0664
Daily Pivot Point S3	1.0632
Daily Pivot Point R1	1.0814
Daily Pivot Point R2	1.0846
Daily Pivot Point R3	1.0906

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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