The USD Is Taking A Beating-Overnight Preview (EUR/USD)

Throughout the day Euro backers have entered the market in force driving price north over 60 pips. Euro bulls are in complete control.

Shain Vernier•Thursday, December 28, 2017•2 min read

It has been a solid U.S. session for the EUR/USD, as bulls have taken complete control. Throughout the day Euro backers have entered the market in force driving price north over 60 pips. Is the EUR/USD to challenge the 1.2000 level by Friday’s close?

In addition to the Euro, the USD has struggled against many of the majors. Formidable losses against the CAD, CHF, JPY, and AUD have marked a brutal session for the greenback. Here are the key overnight economic events that may spark a recovery:

Region Event

Australia Private Sector Credit

Eurozone Consumer Confidence, Harmonized Index of Consumer Prices

Austria Producer Price Index

EUR/USD Technicals

In a Wednesday update, the November high of 1.1960 was outlined as a key level of resistance. As of this writing, it is being repeatedly tested.

Holiday weeks are typically defined by unpredictable price action and limited participation. By looking at the EUR/USD daily chart, you can see both of these characteristics on display; tight choppy markets followed by an unforeseen directional move. This type of market dynamic is difficult to trade efficiently.

If the Euro continues its route of the greenback, topside resistance will come into play very shortly:

Resistance(1): November high, 1.1960
Resistance(2): Key psyche level, 1.2000
Resistance(3): 2017’s high, 1.2091

Overview: These levels are extremely public, as there are no unique technical indicators acting as their basis. Institutional money appears to be driving this market, which increases the likelihood of short position stop outs being challenged at each level. Be on the lookout for bolstered participation around the defined resistance areas.

Tomorrow marks the close to the trading week and last full day of trading of the year. With so little time left on 2017’s clock anything is possible. It is a good idea to manage risk aggressively and buckle up!

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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.