EUR/USD price analysis: support located at 1.1672

EUR/USD price analysis: with the price being bought from 1.1672 support, we look for a temporary correction higher

EUR/USD price analysis                                 

Market highlights from the past week

Wednesday September 16: The Federal Reserve reiterated its commitment to getting inflation above 2 per cent to raise the average and forecast no increase in the Fed Funds rate until at least the end of 2023

Thursday September 17: the US dollar was unable to hold gains into the US open amid underlying negative sentiment. Following the Federal Reserve policy statement, there were strong expectations that interest rates would remain at extremely low levels for an extended period

Friday September 18: the US dollar regained some ground late in the day amid a fragile risk tone, although overall progress was limited with EUR/USD around 1.1830

Monday September 21: ECB president Christine Lagarde stated that the recovery remains very uncertain, uneven and incomplete. In this context, the uncertain environment required very careful assessment, including developments in the exchange rate

Tuesday September 22: eurozone consumer confidence recovered slightly to -13.9 for September from -14.7 previously and slightly above consensus forecasts.

EUR/USD price analysis

Let’s have a look at the technical viewpoint.

Monthly: trades to the higher level in 26 months. We have the trend of lower highs located at 1.2018

Weekly: an AB=CD corrective formation has been completed at 1.1945

Daily: we have a 261.8 per cent extension level located at 1.1968 (from 1.6036-1.1148). From an Elliot Wave perspective, this could be the completion of a fifth wave (five waves up, three waves down). Support is seen at 1.1672

Intraday four-hour: broken out of the head-and-shoulders formation to the downside. This has a measured move target of 1.1483. The reverse trend line resistance is located at 1.1732

Outlook: with price being bought from 1.1672 support, we look for a temporary correction higher.

Possible trade set-up (today only)

Action: buying at 1.1672 (support)

Stop: 1.1652

Target: 1.1732 (trend line resistance)

Potential return on risk to first target:  R3 (reward 60/risk 20)

Euro / US Dollar
Daily change
1.17142
Low: 1.1703
High: 1.17456

Risk Warning - Your capital is at risk - Losses can exceed deposits

Trading spot foreign exchange and futures on margin carries a high level of risk and may not be suitable for all investors. You may lose all your capital. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in spot foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. If you are in any doubt about investment or the mechanics of such products, you should seek independent financial advice

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with crypto or fiat
iMac Image