EURUSD Technical Analysis | Forexlive
On the daily chart below for
EURUSD, we can see that the price keeps on trying to breakout the 1.1033 high,
but as of now all the attempts failed. The red long period moving
average is offering support for the buyers, but the sellers above the 1.1033
high are very strong and if they succeed to make a new lower low, we may have a
big double
top pattern.
Yesterday, the price was about to
break below the moving average as the US
ISM Manufacturing PMI beat expectations the previous day, but then the US
Job Openings missed expectations and the market started to
focus again on the weakening labour market and rate cuts from the Fed.
On the 4 hour chart below, we can
see that the price has been trending upwards within a channel and that the
whole move up was diverging with the MACD. Generally, this is a sign of
weakening momentum and it’s often followed by pullbacks or reversals. The price
has briefly broken out of the channel and if it makes a new lower low, then the
target should be the bottom of the channel at 1.0750. Today is a big day as we have the US
ISM Services PMI and the FOMC Policy Announcement.
On the 1 hour chart below, we can
see that the price action is mostly rangebound between the 1.0960 and 1.1060
levels. There’s lots of uncertainty in the market at the moment and it will
need a clear catalyst to break out on either side. For the buyers a clear break
above the 1.1060 level supported by a fundamental catalyst should give the
buyers control and lead to new higher highs. For the sellers, on the other
hand, a break below the 1.0960 level should give the conviction to target the
1.0750 level.