Euro, EUR/USD Price Action Analysis:
- The Euro[1] had a brutal first few weeks of February, especially against the US Dollar[2].
- EUR/USD[3] set a fresh two-year-low just last week.
- Since then, however, selling pressure has dried up and the pair has begun to retrace.
EUR/USD Breaks Out from Ascending Triangle Formation
In a very similar scenario as to what showed in the US Dollar in early-January[4], EUR/USD[5] has jumped higher in a bullish breakout after the build of an ascending triangle formation. And, in both cases, the market was in a heavily beleaguered state after a prolonged sell-off brought multi-month and, in the instance of EUR/USD, multi-year lows into the mix.
I had looked at this setup on Tuesday of this week; with EUR/USD being an area of interest for bearish-USD strategies[6] while USD/CAD[7] remained of interest for bullish-USD scenarios. At this point, both markets have broken out; with USD/CAD stubbornly pushing up to fresh four-month-highs[8] despite the fact that DXY continues to sell-off ahead of month-end. Also looked at in that article were two points of resistance to follow for that EUR/USD breakout to move towards next: The price of 1.0890 as a nearby spot and then 1.0925 as a secondary resistance level. Now – the pair is charging-higher towards a big area of long-term interest that now sits just ahead.
EUR/USD Two-Hour Price Chart
EUR/USD Nearing Potential Resistance, Prior Support
The price of 1.1000 is and has been an important psychological hurdle in the pair for over the past few months. After showing resistance-turned-support in early-October, the zone running from 1.0987-1.1000 elicited multiple support inflections. Another support
