EUR/USD: Northbound Freight Train
Shain Vernier • 1 min read
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.