Technical analysis of EUR/USD: The pair has shifted to a cautiously bullish bias, supported by holding above the 1.1700 pivot zone. We detail chart setups, tactical bullish and bearish scenarios, and key levels to watch ahead of high-volatility events, specifically the FOMC and ECB meetings this week.
The week has started with risk assets remaining largely on the front foot, after the big tech-driven rally on Wall Street ahead of key earnings reports this week. Weekend chatter points to a fresh proposal from Iran to extend the ceasefire, which at least keeps the door ajar for a negotiated resolution to the Middle East tensions.
EUR/USD: EU policy risks and weaker German sentiment – BNY
Recovery from a higher base at 1.1660 zone extends into second straight day and cracks significant barrier at 1.1745 (top of thick daily Ichimoku cloud) with sustained break here to boost positive signal and open way for further recovery.
The Euro managed to break above the resistance level of the triangle formation to meet the first target at 1.8000. Resistance at 1.1800-35 caused a drop while supports at 1.1600 could create a trading zone.
EUR/USD: ECB message to anchor pair – ING
EUR/USD: Downside bias hinges on 1.1665 break – UOB
EUR/USD Price Forecast: Bounces back to near 1.1730 as 20-day EMA remains supportive
Looking at the 4-hour chart, the pair is still above the 1.1665 pivot level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Besides, there is a bullish trend line forming with support at 1.1690.
EUR/USD trades above 1.1700 after paring latest losses
After touching a high of nearly 1.17915 on Monday, the EUR/USD was trading around 1.16690 on Thursday, this before going into the weekend around 1.17170.
As the trading week comes to an end, EUR/USD has posted a gain of more than 0.3% during the final session, with the euro showing a modest recovery in strength in the short term. However, when looking at the average of recent sessions, price action continues to reflect a consistent phase of neutrality.