EUR/USD Forex Technical Analysis – Weekly Chart Shows Strength Over 1.1347, Weakness Under 1.1328

The Euro soared against the U.S. Dollar last week, helped by dovish comments from U.S. Federal Reserve Chairman Jerome Powell and less-dovish remarks from European Central Bank President Mario Draghi.

A plunge in U.S. Treasury yields and weaker-than-expected U.S. labor market data helped make the U.S. Dollar a less attractive investment. Increased odds of a rate cut by the Fed also contributed to the greenback’s weakness.

Last week, the EUR/USD settled at 1.1333, up 0.0164 or +1.47%.

Weekly Technical Analysis

The main trend is down according to the weekly swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom at 1.1107 the week-ending May 24.

The main trend will change to up on a trade through 1.1448. A move through 1.1107 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The major range is 1.0339 to 1.12555. Its retracement zone at 1.1447 to 1.1185 is controlling the longer-term direction of the EUR/USD. The Forex pair is currently trading inside this zone.

The short-term range is 1.1448 to 1.1107. Its retracement zone is 1.1278 to 1.1318. This zone is controlling the near-term direction of the EUR/USD.

Weekly Technical Forecast

Based on last week’s close at 1.1333, the direction of the EUR/USD this week is likely to be determined by trader reaction to the uptrending Gann angle at 1.1347 and the downtrending Gann angle at 1.1328.

Bullish Scenario

A sustained move over 1.1347 will indicate the buying is getting stronger. This could trigger a rally into a downtrending Gann angle at 1.1388. This is a potential trigger point for an acceleration to the upside with potential targets the major 50% level at 1.1447 and the main top at 1.1448.

A trade through 1.1448 will change the main trend to up. This could also trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 1.1328 will signal the presence of sellers. Crossing to the weak side of the short-term Fibonacci level at 1.1318 will indicate the selling is getting stronger. This could trigger a break into the short-term 50% level at 1.1278.

The 50% level at 1.1278 is a trigger point for an acceleration into the next uptrending Gann angle at 1.1227.