Talking Points:
- EUR/USD Tests Monthly Lows
- Daily Support for is Found at 1.0521
- Looking for additional trade ideas for the Euro and US Dollar ? Read Our Market Forecast
The EUR/ USD has fallen just shy of new monthly lows, as the US Dollar resumes strengthening in the short term. Technically, the EUR/USD is trending lower in the short term, after putting in a new 2017 high at 1.0829 earlier in the month. Short term traders should note that the EUR/USD remains below its 10 Day EMA (exponential moving average) found at 1.0618. As long as the pair trends lower, this average may be referenced as a short term value of support.
EUR/USD, Daily Trend with Averages
(Created Using IG Charts)
Traders tracking the US Dollar Basket should note that the Index is again trending higher after a short retracement last week. Currently prices are pressing to a new monthly high, above last week’s peak at 101.32. If prices continue to rise in the short term, the next technical test for the US Dollar will be the January 19th swing high found at 101.67. A move beyond this point exposes longer term points of resistance, which includes the standing 2017 high at 103.80.
If the US Dollar begins to weaken, traders will first look for the Index to decline below the displayed 10 Day EMA found at 100.85. This line is currently acting as a point of support, and a breakout below this value would suggest a shirt in the US Dollar’s short term trend. In a bearish scenario traders should next look for prices to challenge last week slow which is found at 100.35.
US Dollar Basket, with Averages
(Created Using IG Charts)
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