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EURUSD Forex Trading Analysis

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EURUSD Daily Forex Analysis

This post is all about today’s analysis of EURUSD. The EURUSD Forex Trading Analysis will help the traders to get the ideas for trading this pair.

EURUSD Short CJ Methodology

EURUSD remains on the defensive following its failure last week ahead of the 2014-2015 resistance line at 1.1296. Support offered by the 1.1078/80, 20 and 200 day moving averages is being eroded and failure here will retarget the 1.0950 5 month uptrend. According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, a breach of the 1.1080 region could allow for a new visit to the mid-1.0900s.

EURUSD Forex Trading Analysis 1

EURUSD Forex Trading Analysis

From here, a daily close below the 23.6% Fibonacci expansion at 1.1067 opens the door for a challenge of the 38.2% level at 1.0965. Alternatively, a move back above the 14.6% Fib at 1.1131 paves the way for a rest of the August 2 high at 1.1234. An attractive trade setup seems to be absent for now. Risk/reward considerations argue against entering short as prices sit squarely at near-term support. Furthermore, the immediately available trading range seems too narrow relative to ATR-implied volatility readings.

EURUSD Forex Trading Analysis

EURUSD Forex Analysis Long

Investor activity during the American session was low. Due to the lack of catalysers for movement, the EURUSD dropped to 1.1072 and then restored to 1.1088 by trade opening in Asia. The euro spent the day in a 33 point corridor range. The news is little, too little for it to rock the market. Due to this, the euro’s strengthening has a ceiling of 1.1150.

EURUSD Forex Trading Analysis 3

EURUSD Technical Analysis Long

The shared currency alternates gains with losses vs. the greenback on Tuesday, with EURUSD extending its consolidation theme in the 1.1080 region. Spot is challenging the area of Monday’s lows in the vicinity of 1.1070 as the bid tone around the US dollar remains unchanged. In fact, the USD Index is extending its rally since last week’s lows in sub-95.00 levels, advancing so far for the fifth consecutive session (EURUSD Forex Trading Analysis).

EURUSD Forex Trading Analysis 4

EURUSD Short H1 Analysis

The pair is now losing 0.06% at 1.1079 facing the immediate support at 1.1043 (low Aug.5) followed by 1.0950 (low Jul.25) and then 1.0913 (post-Brexit low Jun.24). On the flip side, a breakout of 1.1150 (55-day sma) would open the door to 1.1236 (high Aug.2) and finally 1.1263 (50% Fibo of the May-June down move) (EURUSD Forex Trading Analysis).

EURUSD Forex Trading Analysis 5

The EURUSD pair did almost nothing during the day on Monday, as we continue to see softness when it comes to the Euro. Ultimately though, it looks as if the market is rolling over a bit so I believe that we will probably try to reach back towards the 1.10 level below. That is a massive support level though, so having said that I feel it is only a matter of time before the market not only test that area, but I do think we will more than likely break down below there.

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Andrew Pial

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