EUR/USD Weekly Price Outlook: Euro Trading Levels Heading Into 2019

EUR/USD is poised to close nearly 5% lower year-to-date with the pair trading just 1.5% off the 2018 lows. For months now, we’ve been tracking a key support pivot in Euro and the focus remains on a breakout of the consolidation range which has governed price since October. Here are the key targets & invalidation levels that matter on the EUR/USD weekly chart heading into the close of the year.


(Click on image to enlarge)

Notes: In our last EUR/USD Weekly Technical Outlook we noted that price was trading just above a key support pivot with, “the broader short-bias remains at risk while above this level - for now, I’ll be on the lookout for possible price exhaustion on a move towards 1.13 again.” Nearly three weeks later an Euro has continued to respect this threshold on a weekly close basis with price now testing the monthly range highs into the close of the year.

Key weekly resistance stands at 1.1586-1.16030 where the March trendline converges on the September outside-weekly reversal close (also the high week close) and the 61.8% retracement. A breach / close above this threshold is needed to suggest that a more significant low is in place with such a scenario targeting subsequent topside objectives at 1.1727 and the median-line / 52-week moving average / September high at 1.1800/15.

A close below 1.13 would mark resumption of the broader downtrend (and likely fuel accelerated losses) targeting the key 61.8% retracement of the 2017 advance at 1.1186 and pitchfork support, currently at ~1.1030.

Bottom line: Euro has continued to hold above the 1.13-support pivot with the broader short-bias still vulnerable while above this region heading into the close of the year. From a trading standpoint, I’ll continue to favor fading weakness while above targeting highlighted confluence resistance- look for a bigger reaction there IF reached for further guidance.

1 2
View single page >> |

Disclosure: Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.