Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk

The Euro is trading lower late Friday, but profit-taking has allowed the single-currency to claw back more than half of its earlier losses. Firmer U.S. Treasury yields and increased demand for higher-yielding assets pressured the Euro early. The catalyst behind the selling was an article in the Wall Street Journal which said the European Central Bank will announce a package of stimulus measures at its next policy meeting in September that should exceed investors’ expectations, according to a top official at the central bank.

At 18:14 GMT, the EUR/USD is trading 1.1100, down 0.0009 or -0.09%.

Know where EUR/USD is headed? Take advantage now with 

75% of retail CFD investors lose money


Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1027 will signal a resumption of the downtrend. The main trend will change to up on a move through the swing top at 1.1250. This is highly unlikely, however, the EUR/USD is down eight days from its last main top, which means we should start watching for a closing price reversal bottom.

The short-term range is 1.1027 to 1.1250. It is currently trading on the weak side of its retracement zone at 1.1112 to 1.1139, making it resistance. Overcoming this zone will indicate the return of buyers.


Daily Technical Forecast

Based on the early price action and the current price at 1.1100, the direction of the EUR/USD into the close is likely to be determined by the short-term Fibonacci level at 1.1112.

Bearish Scenario

A sustained move under 1.1112 will indicate the presence of sellers. If this move creates enough downside momentum then look for a retest of a downtrending Gann angle at 1.1090 and an uptrending Gann angle at 1.1082. If this angle is taken out then look for a possible move into the next uptrending Gann angle at 1.1055. This is the last potential support angle before the 1.1027 main bottom.

Bullish Scenario

A sustained move over 1.1112 will signal the presence of buyers. This will also put the EUR/USD higher for the session and in a position to post a potentially closing price reversal bottom, which could lead to a 2 to 3 ay counter-trend rally next week.

Overcoming the Fibonacci level at 1.1112 could trigger a strong short-covering rally with the short-term 50% level at 1.1139 the next potential upside target.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.