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#1 23-12-2019 08:27:25

Admin & Trader
From: Paris - France
Registered: 21-12-2009
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EUR/USD: pair remains bearish at start of year's most dangerous week

EUR/USD: the pair remains bearish during the start of the year's most dangerous week

The pair is showing an interesting chart pattern, as the most "dangerous" week of the year begins, the week in which declining liquidity makes unpredictable movements and sudden increases in volatility more likely.

Remember that last week was difficult for the eurodollar, with a drop between a high of 1.1174 on Tuesday and a low of 1.1065 at the end of the week, in the face of a busy economic calendar, but also in the face of a bearish technical context, since last week's movements were associated with a failure to break above the 200-day moving average followed by a return to the 100-day moving average, a textbook case of technical analysis.

This week, the euro will be more or less on its own, with the only important statistic being the US New Home Sales today at 16:00. The end of the year festivities are indeed considerably lightening the pace of economic publications.

From a chart perspective, we can see on the hourly chart that the 100-hour moving average fell below the 200-hour moving average shortly after the weekly reopening of the forex market yesterday, which is an important bearish signal.

If the drop continues, Friday's low of 1.1065 should be considered a major support level, as it also corresponds to the current positioning of the 100-day moving average.

Thus, a break below this threshold would be a key bearish signal that would put the psychological high of 1.10 in the line of fire.

On the upside, the psychological threshold of 1.11, then the 100 and 200-hour moving averages at 1.1120-26, and the 200-day moving average at 1.1147 are the first obstacles to be taken into account ahead of the psychological threshold of 1.12.

Currently, the pair is trading around 1.1115 on the forex.

Hourly EUR/USD chart

"Anything worth having is worth going for - all the way." - J.R. Ewing



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