EUR/USD Price Analysis: Path of least resistance appears down ahead of Lagarde

  • EUR/USD wavers in a tight range below 1.1700-1.1730, Lagarde eyed.
  • German election wrangling and weaker US dollar leave the pair in limbo.
  • EUR/USD’s hourly chart shows that downside remains more compelling for now.

EUR/USD is attempting a tepid bounce from daily lows, but remains well within the trading range so far this Monday, as markets refrain from placing any fresh bets on the main currency pair after the German election outcome and ahead of the speech by the European Central Bank (ECB) Christine Lagarde.

Markets also await the US Durable Goods Orders data for fresh dollar trades, as the risk-on mood appears to keep the USD bulls at bay in early Europe. Receding China Evergrande fears combined with the US infrastructure stimulus optimism has lifted the investors’ sentiments starting out a big week, with Fed Chair Powell’s testimony and the US ISM Manufacturing Index – the key highlights.

Looking at EUR/USD’s one-hour chart, the price is teasing an ascending triangle breakdown, with an hourly candlestick closing below the rising trendline support at 1.1722 to validate the downside breakout.

A test of the 1.1700 mark will be inevitable on a triangle breakdown, opening floors for a retest of the multi-week lows near 1.1680.

The Relative Strength Index (RSI) is pointing south below the midline, backing the case for further downside.

EUR/USD: Hourly chart

Alternatively, recapturing of the triangle support now resistance at 1.1722 is critical to attempting a minor pullback towards the horizontal 100-Hourly Moving Average (HMA) at 1.1726.

Further up, the mildly bullish 50-HMA at 1.1730 could be challenged by the bullish traders. The 1.1750 psychological level will come into play if the buying pressure intensifies.

EUR/USD: Additional levels to consider


Today last price 1.1714
Today Daily Change -0.0004
Today Daily Change % -0.03
Today daily open 1.172
Daily SMA20 1.1795
Daily SMA50 1.1786
Daily SMA100 1.191
Daily SMA200 1.198
Previous Daily High 1.1748
Previous Daily Low 1.1701
Previous Weekly High 1.1756
Previous Weekly Low 1.1684
Previous Monthly High 1.19
Previous Monthly Low 1.1664
Daily Fibonacci 38.2% 1.1719
Daily Fibonacci 61.8% 1.173
Daily Pivot Point S1 1.1698
Daily Pivot Point S2 1.1676
Daily Pivot Point S3 1.1651
Daily Pivot Point R1 1.1745
Daily Pivot Point R2 1.177
Daily Pivot Point R3 1.1792



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD drops towards 1.1300 as Omicron, inflation concerns weigh

EUR/USD is trading below 1.1350, consolidating the biggest daily jump in a fortnight. The US dollar rebound amid a cautious mood. Omicron, US-China woes keep investors on the edge, Rising US inflation expectations underpin the yields. US jobless claims, Omicron updates closely eyed.


GBP/USD trades with modest gains above 1.3200 mark, lacks follow-through

GBP/USD is trading flat above 1.3200, struggling to capitalize on the overnight goodish rebound from a one-year low. Fresh COVID-19 jitters pushed back BoE rate hike expectations and undermined the pound. Resurgent USD demand further stalled aggressive bullish bets.


Gold: Doji below 200-DMA teases bears, Omicron updates eyed

Gold portrays trader’s indecision below the key moving average following Wednesday’s bearish candlestick. Market sentiment dwindles as virus-linked news battles geopolitical fears. Friday’s US CPI becomes crucial as inflation expectations improve.

Gold News

Why MATIC price could soon see a meteoric rise toward the round level of $4

MATIC price appears to be ready for a major upswing toward $3.84. The governing technical pattern suggests that the layer-2 token is preparing for a 62% climb.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!