EUR/USD Price Outlook: Euro Fails At 1.15 - Levels To Know For NFP

Euro is threatening a four-day winning streak against the US Dollar with the recent price rally failing at the 1.15-handle today in New York. The immediate threat is lower near-term, but the broader outlook remains constructive and we’re looking for a pullback to offer more favorable opportunities. These are the updated targets and invalidation levels that matter on the EUR/USD charts.

EUR/USD DAILY PRICE CHART

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EUR/USD Price Chart - Euro vs US Dollar Daily

Technical Outlook: In my latest EUR/USD Technical Price Outlook we noted that the pullback was, ‘approaching monthly up-trend support just lower and IF price is heading higher, Euro would need to hold above slope support.” A brief stint below pitchfork support saw a test of the December low-day close at 1.1303 before reversing sharply on January 25th with the advance now testing the monthly high-day close at 1.15. A close above this threshold is needed to fuel the next leg higher targeting the high-close at 1.1542backed by the 200-day moving average and the 61.8% retracement of the 2018 range at 1.1586.

EUR/USD 120MIN PRICE CHART

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EUR/USD Price Chart - Euro vs US Dollar 120min

Notes: A closer look at price action shows EUR/USD trading within the confines of an ascending channel formation extending off the monthly lows with price Euro turning just pips from slope resistance today. Initial support now rests back at monthly / yearly open at 1.1449/50 backed closely by the lower parallel – a break there would suggest a larger correction is underway with such a scenario exposing the weekly open at the 1.14-handle (near-term bullish invalidation). Resistance remains at 1.15 with a breach above the weekly range-highs targeting the highlighted resistance confluence at 1.1542.

Bottom line: The immediate risk is lower in price but IF the Euro is indeed heading higher, losses should be limited to the 1.14-handle. From a trading standpoint, I’m looking for downside exhaustion on a move lower to offer more favorable long-entries while above 1.1350 targeting the yearly high-close. Review my EUR/USD Weekly Technical Outlook for a look at the longer-term trading levels heading into the close of the month.

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