EUR/USD Weekly Technical Outlook: Euro in Conflict as New Week Arrives

EUR/USD Technical Highlights:

  • Euro sell-off halted right around 11300 support
  • Late-week bounce has confluent resistance in focus
  • It’s a battle between relatively tight levels

For the intermediate-term fundamental and technical view, check out the DailyFX Q4 Euro Forecast.

Euro in conflict to start the week

On Thursday, EUR/USD traded down to 11302, just a pip above the August low and a handful of pips away from the U.S. presidential-election day high that gave meaning to the area immediately surrounding 11300. While this is considered a steadfast level of support to bounce from, immediate resistance threatens any climb from here.

On Friday the advance was stopped in its tracks upon trading up into a pair of short-term lows created during October. In addition to these lows there is trend-line resistance from the peak in September, as well as the underside of a trend-line dating back to December 2016. All of this in conjunction with a generally weak trend makes for a tough ride higher.

Tactically, trend and resistance are in favor of shorts, however; the strong bounce off a big support level gives pause as to whether a move lower is sustainable. This

Article source: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2018/11/02/EURUSD-Weekly-Technical-Outlook-Euro-in-Conflict-as-New-Week-Arrives.html