EURO VS US DOLLAR Technical Outlook — What’s Really Happening?

[ronykhan]

• Neutral outlook while below 1.1828
• EUR vs USD possibly develops a reversal pattern

BULLISH MOMENTUM EASED, BUT THE BIAS HIGHER REMAINED

Last week, EUR/USD hit an over two-year high of 1.1909 then retreated after, as some bulls seemed to cut back. Ultimately, a weekly candlestick closed in the green with a 1.0% gain.

Alongside that, the Relative Strength Index (RSI) remained in overbought territory emphasizing the strength of the bullish momentum.

EUR/USD daily price chart (Sep 1, 2018 — August 7, 2020) Highlighted-

EURUSD-Price-Forecast-Eyes-a-Test-of-the-Neckline-Support-Level_body_Picture_3.png


EUR/USD daily price chart (Jul10 — August 7, 2020) Highlighted-

EURUSD-Price-Forecast-Eyes-a-Test-of-the-Neckline-Support-Level_body_Picture_4.png

On August 3, EUR/USD U-turned and traded higher highlighting that bullish momentum was still in place. In the same week, the price climbed back to the current 1.1828–1.1986 trading zone and printed a new multi-month high at 1.1916.

A daily close above the high end of the current trading zone could encourage bulls to extend the rally towards the monthly resistance level at 1.2154 ( March 2018 low).

On the other hand, a daily close below the low end of the zone reflects bull’s hesitation and may guide EURUSD’s fall towards the weekly support level at 1.1639 ( Aug 2018 high).

EUR/USD four-hour price chart (July 10 — August 7, 2020)

EURUSD-Price-Forecast-Eyes-a-Test-of-the-Neckline-Support-Level_body_Picture_1.png

On Thursday, EUR/USD created the second top of a Double Top pattern. A violation of the neckline located at 1.1696 indicates a possible shift in favor bear’s control.

To conclude, while bulls still have the upper hand a break below the bullish trendline support originated from the July 10 low at 1.1254 indicates a weaker upward trend.

Therefore, a break below 1.1763 could send the EURUSD towards 1.1698, while a break above the 1.2000 thresholds may trigger a rally towards 1.2095. As such, the support and resistance levels marked on the four-hour chart should be kept in focus and that’s what the experts of Pipswin.com have predicted.

[Nuathris]

Despite the fact that both of these assets are going through bad times, they still retain their classic position. And this is confirmed by the standard "behavior" of these currencies during fundamental events, etc. Yes, it is now forming new levels - this is a real change, but you should already decide for yourself which type of analysis you would prefer to use at this time. I heard the news that in the near future, the dollar will lose its leadership position. But for today it seems to me like a long-term perspective, because the American economy is stable enough to cope with these temporary difficulties. Although let's look at it, I think anything is possible today.