EUR/USD Highlights:

  • EUR/USD faring better than other USD-pairs, so far
  • 2008 trend-line remains a big obstacle to overcome
  • Technical levels, lines highlighted on daily and 4-hr time-frames

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Last week, we saw some aggressive moves in USD-pairs, but sellers didn’t show up in earnest in EUR/USD like they did in the major currencies. But that could change in the week ahead. The 2008 trend-line remains a big obstacle to overcome.

The reversal-high on Jan 25 didn’t resolve itself into a dive lower, instead we’ve seen EUR/USD trade sideways to upward. Friday resulted in a modest give-back from very near the 1/25 high and 2008 trend-line, but it has yet to be much of a forceful rejection.

Monthly Chart – EUR/USD

Euro Fending Off USD Buyers (For Now)

Given the long-term nature of the trend-line, you need to use a crayon to draw it rather than fine ball-point pen. There is still some room for EUR/USD to wiggle higher, but not much if it is act as resistance.

Daily Chart – EUR/USD

EUR/USD daily price chart

Retest of the key-reversal high (double-top), then turn lower?The 2008 trend-line is placed where it is for now given the first reaction on 1/25, but as the monthly chart shows, there is wiggle room should we see a new high.

Dialing in on the 4-hr time-frame, there is a trend-line extending higher from Jan 10 crossing under several small lows created last week. Taking the parallel of that line, we have a solid week-long upward channel in place. In the event of an undercut of the channel, a double-top may be in the works.

Looking lower, support comes in at the top of the triangle created late last month which proceeded the last leg higher; ~12320/290 is the zone to watch. Should the euro hold trend support, another thrust could be in the works, but risk of a swift failure is elevated with the long-term trend-line looming overhead.

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4-hr Chart – EUR/USD

Euro Fending Off USD Buyers (For Now)

Looking to the channel and trend-line for guidance in the days ahead.

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---Written by Paul Robinson, Market Analyst

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Source https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2018/02/03/EURUSD-Weekly-Technical-Outlook-Euro-Fending-Off-USD-Buyers-For-Now.html?DFXfeeds=forex:technical:article:fx_technical_weekly



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