Currency
by FXOpen on January 8, 2019

EUR/USD Technical Analysis: The Euro may test 1.1500 In the near term

Heading into 2019, we are taking a more neutral view of the US Dollar after being bullish for much of 2018. U.S. monetary policy has ceased to be a support, with Fed fund futures having now largely priced out any hike for 2019, and now imply a 25 bp cut by mid-2020.

On the Euro side of the coin, there are increasing signs of flagging economic growth momentum. We see EUR/USD as having entered a broadly sideways range phase as markets continue to fathom the push of the populist political movement in Europe and the pull of a more neutral Fed policy stance.

The Euro recovered nicely and moved above the 1.1350 resistance level against the US Dollar. The EUR/USD pair even broke the 1.1380 resistance area to move into a positive zone.

The pair traded towards the 1.1400 barrier and settled above the 50 hourly simple moving average. The pair traded above the 50% Fib retracement level of the last decline from the 1.1496 high to 1.1291 low.

EURUSD-Chart

If buyers succeed in clearing the 1.1420 resistance, there could be more gains in the near term. The next resistance is near the 1.1480 level, above which the pair may test 1.1500 in the near term.

On the downside, an initial support is at 1.1380, below which there is a risk of more losses towards the 1.1350 level. The main support is at 1.1320, where buyers are likely to defend losses.

By FXOpen

FXOpen is a Forex and Cryptocurrency broker founded in 2005 by a group of traders. With over 10 years of experience, the company has established itself as a major Forex broker that continues to expand rapidly across the globe. FXOpen offers the MT4 and MT5 Forex trading platform with a wide range of trading instruments including 100+ FX, CFDs, Indices and Cryptocurrency markets. FXOpen also provides its own PAMM technology allowing clients to benefit from the strategies of professional traders with a proven track record of successful trading. The FXOpen Group also includes the ASIC regulated FXOpen AU in Perth Australia and the London-based FXOpen UK that is regulated by the FCA.

More content by FXOpen

Comments (0 comment(s))