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EUR/USD: technical update

EUR/USD opened the week with a gap down and slipped below $1.2950. Greenback extends gains as recent positive data from US renewed talks about the possible QE dampening. Traders increased their net long USD positions last week, demonstrating growing confidence in the US dollar. The key risk event in the euro zone is the Q1 GDP release on Wednesday. The figure is expected to show economic contraction continues. 

The current technical picture remains bearish. Next support for the pair lies at $1.2920 (bottom of the daily Ichimoku), $1.2900 and $1.2880 (50-week SMA). Break below the last level would open the way to the 2013 low of $1.2750, hit in March. Euro bulls are now capped by the 200-day SMA at $1.2980. The next resistance lies at $1.3000 and $1.3030.

Chart. H4 EUR/USD

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