EUR/USD Technical Highlights:
- EUR/USD treading water after bounce from simply beneath parity
- May be a bit extra upside in play earlier than turning again decrease
The EUR/USD bounce from below parity misplaced steam only some days into the rally and since then it has moved typically sideways. With this growth taking form inside the context of a robust downtrend we could quickly see a resumption of weak point.
But earlier than that happens one other spherical of power could first unfold, nonetheless, it might not be the most tradable rally as momentum is missing and powerful resistance lies not too far forward. A break above 10278 may have a pair of lows created this 12 months in focus.
The lows clock in round the 10350-mark, which is a only a quick distance away from the 2017 low at 10340. It is a significant space to concentrate to. Adding additional weight to the mid-103s is the sturdy downward channel line from early this 12 months.
The confluence between numerous factors of resistance will make for an fascinating check, assuming the Euro can rally that far. Right now the wrestle is actual as we’re seeing a muted response by the market. Should this week’s low at 10096 break, then search for the current low beneath parity at 9952 to come again into play.
Overall, extra upside nonetheless appears to be like prefer it may very well be in the playing cards, but when 10278 maintains and we see the weekly low break, then that notion might be off the desk for now. From a danger/reward perspective, it will be splendid to see a rally to confluent resistance and subsequent failure for would-be shorts.
EUR/USD Daily Chart
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—Written by Paul Robinson, Market Analyst
You can observe Paul on Twitter at @PaulRobinsonFX