Open an Account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an Account
✖

Euro short-term technical outlook: EUR/USD decision time

Article By: ,  Sr. Technical Strategist
February 13, 2023 10:19 AM

 Euro technical outlook: EUR/USD short-term trade levels

  • Euro price charts - Daily & 240min
  • EUR/USD reverses sharply off uptrend resistance- now testing initial uptrend support
  • Resistance 1.08, 1.0865/89, 1.1033 - support 1.0636, 1.05, 1.0405/61

Euro has been in free-fall for the past two-weeks with EUR/USD plunging into a major support pivot around the 2023 yearly open- its decision time for the bears. These are the updated targets and invalidation levels that matter on the EUR/USD short-term technical charts.

Discuss this EUR/USD setup and more in the Weekly Strategy Webinars beginning February 27th.

Euro Price Chart – EUR/USD Daily

 

Chart Prepared by Michael Boutros, Sr. Technical Strategist; EUR/USD on TradingView

Technical Outlook: Euro plunged more than 3.4% off the monthly high with EUR/USD now testing a key pivot zone at 1.0636-1.0705 – a region defined by the 2020 swing low, the December high-close and the objective 2023 yearly open.

I’m on the lookout for possible price inflection here with a break / close below this threshold threatening a larger correction within the broader uptrend. Key daily resistance now stands with the objective February open / 61.8 % retracement of the monthly range at 1.0865/89.     

Euro Price Chart – EUR/USD 240min

 

Chart Prepared by Michael Boutros, Sr. Technical Strategist; EUR/USD on TradingView

Notes: A closer look at Euro price action shows EUR/USD opening the week at confluent support at 1.0636-1.0705.  Initial resistance is eyed at the 1.08-handle with a breach / close above 1.0889 needed to mark resumption of the September uptrend towards key the 76.4% retracement of the 2022 range / yearly high at 1.1033.

A break below this key pivot zone could fuel an accelerated decline with such a scenario exposing 1.05 and the 2017 low-day close / 38.2% retracement of the October advance at 1.0405/61- an area of interest for possible downside exhaustion / price inflection IF reached.

Bottom line: EUR/USD has reversed off confluent uptrend resistance with the pullback now testing initial uptrend support- we’re looking for a reaction down here. From at trading standpoint, a good zone to reduce portions of short-exposure / lower protective stops – rallies should be capped by yearly open resistance IF price is heading lower on this stretch.

Review my latest Euro weekly technical forecast for a look at the longer-term EUR/USD trade levels.

Key Economic Data Releases

 

Economic Calendar - latest economic developments and upcoming event risk.

 

--- Written by Michael Boutros, Sr Technical Strategist with FOREX.com

Follow Michael on Twitter @MBForex

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826). Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosures and Risk Warning. Increased leverage increases risk.

GAIN Capital Group LLC (dba FOREX.com) 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA. GAIN Capital Group LLC is a wholly-owned subsidiary of StoneX Group Inc.

© FOREX.COM 2024