Forex Preview: A Look At The EUR/USD Weekly Chart
Shain Vernier • 2 min read
The forex is currently in the midst of a slow economic news cycle. There are relatively few events scheduled for the coming 24 hours, with zero primary market movers. Price action should remain relatively tame, but one never knows. Surprises typically define our markets, so stay diligent!
Below are several of the events slated for the coming U.S. overnight and premarket hours:
New Zealand NZIER Business Confidence (Q1)
U.K. BRC Like-for-Like Retail Sales (March), MPC Member Haldane Speech
U.S. FOMC Member Kaplan Speech
Canada Housing Starts (March)
These items are secondary market movers. The dialogue from MPC and FOMC members may indeed sway the forex, but that is not a likely scenario. The news items to remain aware of are President Trump’s decisions on Syria and ongoing U.S./China trade war rhetoric.
The EUR/USD has posted a decent rally today, breaking above Friday’s high with vigor. This contradicts the tight trading conditions of the last seven sessions. Rotation has been the rule throughout late March and early April.
A look at the weekly chart coming into today’s session shows just how tight recent trading has been. While the long-term trend is definitely bullish, the intermediate-term has been noncommittal and choppy.
Here are the key levels on the weekly EUR/USD chart to watch for the remainder of the week:
- Resistance(1): 2018’s High, 1.2554
- Support(1): 38% Retracement, 1.2172
- Support(2): 20 Week EMA, 1.2169
- Support(3): Bollinger MP, 1.2121
Overview: Determining where the EUR/USD is heading is a challenging task. The long-term uptrend has stalled out around the 1.2400 handle, with a bulk of the trade occurring near 1.2350. Is this market ever going to open up?
As with all things trading, only time will tell. Wednesday is going to be a big day for the EUR/USD. ECB President Mario Draghi is scheduled to speak, with U.S. CPI and the FOMC Minutes also due out. If we are to see a directional move, it is likely to occur on Wednesday.