EURUSD Technical Update – July 8th – Euro Dollar Weekly Analysis
by Nick Simpson, Forex-FX-4X
- Earlier this week we noted that the EURUSD pair had seen a break of the ascending trend line around 1.2925, which dated back to July last year, after previously breaking through the 1.3000 psychological level.
- Price is now trading around the prior weekly demand area which roughly spans between the 1.2750 – 1.2850 zone. The euro/dollar pair is also trading at the 2nd ascending trend line shown on our weekly chart – after breaking below the steeper trend line this week.
- This comes in the context of the EURUSD pair trading under the weekly time frame engulfing candle, which has given us a bearish directional bias since the week of 23rd June. This bias remains until the 1.3415 area engulfing candle high is taken out or the price action dynamic hints at a correction. Nonetheless, this weekly demand area may see an element of short covering.
- Our latest USDX analysis update shows the dollar index has now jumped above the 84.55 area prior swing high, as markets expectations have increased that interest rates will start rising in a year. The U.S. dollar rose to a six-week high versus the euro.
- See the following EURUSD Weekly/Daily charts for further analysis.
For other analysis: