EUR/USD: Northbound Freight Train

There seems to be no end to the rally in the EUR/USD. As my colleague Skerdian outlined a bit earlier on in the session, technical resistance levels do not seem to matter. No doubt about it, this is a market driven by fundamentals and the perceived weakness of the USD.

EUR/USD Daily Chart- Continuation Of 2017’s Trend

Until we see confirmation that sellers are entering the market in force, the long-term prognosis for the EUR/USD remains bullish.

As I have talked about ad nauseam, the coming FOMC meeting in September will be crucial to this market. In my opinion, the faltering USD furthers the agenda of a tightening monetary policy and ensures a considerable interest rate hike by the FED.

Here are a few technical levels to be aware of:

• Psychological level of 1.2000

• 38% retracement of 3 session rally at 1.1956

• The previous session’s low. If pricing goes below that level, we will be looking at a period of consolidation.

Outlook: As of this writing, the EUR/USD is off of the highs, trading in the neighborhood of 1.2020. Moving forward, I expect consolidation around 1.2000 and a test of the rally's 38% retracement at 1.1956 during the coming sessions.

However, this is a market driven by fundamentals. Seemingly anything is possible. Stay tuned to FX Leaders for analysis and trade ideas facing the most opportune markets and instruments.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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