EUR/USD Technical Analysis: Euro Bounce May Bring Test Above 1.15

Posted on Nov 20, 2018 in Analyst Recommendations

EUR/USD Technical Strategy: Flat

  • Euro breaks 2-month trend resistance, hinting at further gains ahead
  • Longer-term positioning suggests near-term gains probably corrective
  • Profit booked on short trade, waiting for rebound to top for re-entry

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The Euro has breached resistance guiding it lower against the US Dollar since late September, hinting a larger advance may be in the cards. From here, a daily close above the 1.1543-54 chart inflection area exposes minor resistance levels marked by October 16 and August 28 highs at 1.1622 and 1.1734, respectively. A pivotal range top follows in the 1.1815-40 zone.

The outer layer of resistance-turned-support is now at 1.1374. A turn back below that – likewise confirmed on a daily closing basis – would put the 1.1314-1.1279 region back in play. Pushing through that as well would put the November 12 swing low back into the spotlight.

Euro vs US Dollar chart - daily

Turning to the monthly chart for a bit of perspective, further gains from here still look to be corrective within a broader downtrend

Article source: https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2018/11/20/EURUSD-Technical-Analysis-Euro-Bounce-May-Bring-Test-Above-1.15.html