Euro[1] is up more than 3.5% off the yearly lows with the advance breaking through monthly open resistance today in New York trade. Here are the updated targets and invalidation levels that matter on the EUR/USD charts this week. Review this week’s Strategy Webinar[2] for an in-depth breakdown of this setup and more.
EUR/USD Daily Price Chart
Technical Outlook: Euro broke above confluence slope resistance yesterday around ~1.1660 with the rally now besting the August opening-range[3] highs. Note that daily RSI has broken back above the former support trigger with daily momentum stretching into highs not seen since February. Seasonal tendencies (heading into September) favor Euro strength and the focus remains weighted to the topside in price while above 1.1510/29.
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EUR/USD 120min Price Chart
Notes: In last week’s EUR/USD Scalp Report[5], our bottom line noted that, “From a trading standpoint, the immediate threat may be for a pullback but the outlook remains constructive while above the weekly open for now. I’ll favor fading weakness targeting a topside breach of this pivot range.” Price broke above the 1.1529 resistance pivot in the following days with a pullback and subsequent reversal further validating our directional bias.
Euro has continued to trade within this near-term ascending channel off the monthly lows with the upper parallel highlighting immediate topside targets along the July high-day close at 1.1750 and the 38.2% retracement / July high at 1.1780/91. Interim support now rests at 1.1650 with near-term bullish invalidation raised to 1.1614
