James Hyerczyk
Add to Bookmarks

The Euro is drifting lower against the U.S. Dollar on Friday, while hovering around a two-week low. The currency is getting hit by a combination of factors. The U.S. economy is proving to be too resilient versus the Euro Zone, which continues to falter. Volatility is extremely low with the Forex pair posting its narrowest trading range in 20 years on Monday. Finally, traders are beginning to doubt the U.S. and China will be able to reach a preliminary trade deal, called Phase One, before the end of the year. This is encouraging investors to move money into the U.S. Dollar as a hedge.

At 14:20 GMT, the EUR/USD is trading 1.0993, down 0.0018 or -0.17%.

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

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when sellers took out the previous main bottom at 1.0989. The main trend will change to up on a trade through 1.1097. This is highly unlikely, however. Short-sellers need only fear a technical closing price reversal bottom at this time.

The minor trend is also down. Earlier today, the EUR/USD traded through the minor bottom at 1.0991. The next minor bottom target is 1.0941.

The main range is 1.0879 to 1.1179. Its retracement zone at 1.0994 to 1.1029 is resistance. Trading below this zone is helping to generate a downside bias.


Daily Technical Forecast

Based on the early price action and the current price at 1.0993, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to a long-term uptrending Gann angle at 1.0987 and a Fibonacci level at 1.0994.

Bearish Scenario

A sustained move under 1.0987 will indicate the presence of sellers. The first target is a downtrending Gann angle at 1.0977. Crossing to the weak side of this Gann angle will put the EUR/USD in an extremely bearish positon with the next target angle coming in at 1.0933.

Bullish Scenario

A sustained move over 1.0994 will signal the presence of buyers. The first upside target is yesterday’s close at 1.1011. This is followed by a 50% level at 1.1029 and a downtrending Gann angle at 1.1037.

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