Advertisement
Advertisement

EUR/USD Forex Technical Analysis – Testing Lower End of Weekly Retracement Zone

By:
James Hyerczyk
Published: Mar 8, 2019, 04:38 UTC

Based on yesterday’s price action and today’s current price at 1.1196, the direction of the EUR/USD over the near-term is likely to be determined by trader reaction to the Fibonacci level at 1.1185.

EUR/USD

The Euro is trading slightly better early Friday after failing to follow-through to the downside following yesterday’s 1 percent plunge to its lowest level since June 2017. The selling was fueled by a series of dovish announcements from the European Central Bank. On Thursday, the ECB pushed back the timing of its first post-crisis interest rate hike to 2020, cut its economic forecasts and launched a new round of cheap bank loans.

At 04:04 GMT, the EUR/USD is trading 1.1196, up 0.0023 or +0.03%. On Thursday, the single-currency reached a low of 1.1176.

Early Friday, investors may be paring profits ahead of the release of the February U.S. Non-Farm Payrolls report at 13:30 GMT. This report could trigger a volatile reaction.

EURUSD
Weekly EUR/USD

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. The downtrend was reaffirmed on Thursday when sellers took out the previous main bottom at 1.1234. A trade through 1.1420 will change the main trend to up.

The main range is 1.0339 to 1.2555. Its retracement zone is 1.1447 to 1.1185. As you can see from the weekly chart, this zone is controlling the longer-term direction of the EUR/USD.

Weekly Technical Forecast

Based on yesterday’s price action and today’s current price at 1.1196, the direction of the EUR/USD over the near-term is likely to be determined by trader reaction to the Fibonacci level at 1.1185.

Bullish Scenario

A sustained move over 1.1185 will indicate the return of buyers. Overcoming the previous main bottom at 1.1234 will indicate the buying is getting stronger. It will also signal that yesterday’s selling was weak and likely fueled by sell stops.

Bearish Scenario

Taking out 1.1185 will signal the presence of sellers. A move through the week’s low at 1.1176 will indicate the selling is getting stronger. The weekly chart shows there is plenty of room to the downside with the next major target a long-term uptrending Gann angle at 1.0907 this week.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement