Euro is virtually unchanged month-to-date with price continuing to consolidate just above key long-term support. We’re looking for a break of this consolidation with major event risk in the days ahead likely to offer a catalyst for price. Here are the updated targets and invalidation levels that matter for EUR/USD[1] heading into the close of the month. Review this week’s Strategy Webinar[2] for an in-depth breakdown of this setup and more.
EUR/USD Daily Price Chart
Technical Outlook: For months now we’ve been tracking key weekly support in Euro at 1.1606[3], “where the October low-close converges on the median-line of the broader ascending pitchfork formation and basic trendline support extending off the 2016 low.” Price has continued to respect this threshold on a weekly close basis with the 2018 low-day close registering at 1.1603.
EUR/USD has continued to consolidate off the June highs and the focus is on a breakout of this formation to offer further guidance. That said, the risk remains for a larger recovery while above 1.1603 with a break below 1.1529/54 needed to mark resumption of the broader downtrend targeting 1.1448. Daily resistance stands at 1.1750 with a breach / close above 1.1827/52 needed to suggest a more Signiant low is in place.
New to Trading? Get started with this Free Beginners Guide[4]
EUR/USD 120min Price Chart
Notes: A closer look at price action sees EUR/USD trading within the confines of a pitchfork formation[5] extending off the June/July lows with price turning sharply from the median-line early in the week. Interim support rests with
