EURUSD Technical Update (Week Of June 24th): Euro Dollar Analysis
by Nick Simpson, Forex-FX-4X
- Our last EURUSD technical update highlighted a rejection from the 61.8% Fibonacci retrace area around 1.3340, which is roughly aligned with the weekly timeframe 200 SMA.
- The key currency pair has seen a bearish phase during the following days, with a bearish engulfing candle marking the recent 1.3415 area swing high (covered in our twitter updates). The weekly chart has now likewise seen a bearish engulfing candle.
- A strong push under the price pivot zone, circa 1.3240, gave another hint as to the overriding bearish sentiment. This area subsequently acted as resistance on Friday. Any upside heading into the new week would need to contend with this technical area in the first instance.
- The low of last week came on Friday – around 1.3100. This has 50% retrace confluence with a longer term price pivot, in a zone spanning around 1.3100 – 1.3130.
- 1.3000 remains as a key euro/dollar psychological level, and is well within reach if the current volatility and bearish sentiment is seen next week.
- The above comes as the dollar index is trading back at the 82.50 area, the mid point of the swing down from USDX 84.59 – 80.52, as the dollar has seen gains across the board.