Key Levels For The EUR/USD Going Into Next Week
Shain Vernier • 1 min read
The Greenback has been on a tear for a majority of this Friday session. Posting gains across the majors, the USD is in position to eclipse several key forex benchmarks. As of press time, the USD/CHF is trading above par at 1.0005. Conversely, the EUR/USD is rotating around 1.1950, beneath the psychological level of 1.2000.
April was a banner month for the USD against the Euro. The long-term uptrend in the EUR/USD took a breather with valuations falling more than 250 pips. Thus far, May has continued the bearish momentum.
The economic calendar is wide open for most of the coming week. There are no primary market movers for the EUR/USD until Friday’s U.S. CPI release. The lack of scheduled news items can be a good thing. With no fundamentals to spike periodic volatility, position and range trade setups featuring limited risks may be available.
After a failed auction beneath the January low of 1.1916, this market has entered rotation between 1.1950 and 1.2000.
Here are the levels I will be watching as next week develops:
- Resistance(1): Psyche Level, 1.2000
- Resistance(2): 38% Retracement Current Bear Run, 1.2102
- Support(1): Psyche Level, 1.1900
- Support(2): 38% Retracement of 2016/2018 Range, 1.1708 (not pictured)
Overview: As of this writing, the EUR/USD is in a relative no man’s land on the daily time frame. With the macro uptrend remaining valid, 1.1900 may be an intermediate-term bottom. A position long from above 1.2000 may set up for early next week.
Until then, take a few days and recharge the batteries. The Monday market open is only a bit over 48 hours away — see you then!