EURO WEEKLY TECHNICAL FORECAST: NEUTRAL The Euro has weakened broadly over the previous couple of buying and selling periods. Act
EURO WEEKLY TECHNICAL FORECAST: NEUTRAL
The Euro has weakened broadly over the previous couple of buying and selling periods. Actually, latest Euro promoting stress has steered EUR/USD, EUR/GBP, EUR/JPY, EUR/CAD and EUR/AUD into the purple year-to-date. Relative draw back throughout EUR value motion this previous week was seen notably in opposition to the Pound in addition to the Yen and US Greenback, which declined by -1.52%, -1.34% and -1.24% respectively. The Aussie was the laggard out of main Euro friends with EUR/AUD sliding by a extra modest -0.55%.
EUR/USD PRICE CHART: DAILY TIME FRAME (21 AUG 2020 TO 15 JAN 2021)
EUR/USD has pulled again sharply since rejecting the 1.2300-price stage. Probably the most liquid and closely traded forex pair sank practically 250-pips from its 06 January excessive, which propelled EUR/USD value motion beneath its 50-day easy transferring common. To not point out, volatility and bearish momentum have accelerated not too long ago judging by the MACD indicator and Bollinger Band enlargement.
Affirmation of follow-through decrease might be supplied by a breakdown beneath the 09 December swing low and 38.2% Fibonacci retracement proven on the chart above. Taking out this attainable zone of buoyancy would possibly encourage Euro bears to make a deeper push towards the 100-day easy transferring common. The negatively-sloped 20-day easy transferring common might function a technical resistance stage going ahead if a reduction bounce comes into play.
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EUR/AUD PRICE CHART: DAILY TIME FRAME (24 SEP 2020 TO 15 JAN 2021)
EUR/AUD value motion is wanting just a little overextended because the Euro plunges to its weakest stage in opposition to the Aussie since December 2018. The 8-day easy transferring common underscores the FX pair’s short-term bearish development. Surmounting this technical barrier, nevertheless, would possibly open up the door to greater rebound. Along with constructive divergence on the MACD indicator, waning EUR/AUD weak point is hinted at by the relative power index perking again up out of ‘oversold’ territory.
Pinching Bollinger Band width additionally will increase the statistical likelihood of a consolidation greater. If a rebound materializes, EUR/AUD bulls may look towards the 23.6% and 38.2% Fibonacci retracement ranges as potential topside aims. An upward transfer may fizzle out close to broader bearish development resistance connecting the October and December swing highs.
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— Written by Wealthy Dvorak, Analyst for DailyFX.com
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