EURUSD May Have Made a Major Bottom

FXOpen

Technical Bias: Bullish

Key Takeaways

  • Euro broke a crucial resistance versus the US dollar this past week and looks set for more gains.
  • EURUSD has a major support at 1.1100, which can be considered as a buy zone.
  • Euro Area Manufacturing Purchasing Managers Index (PMI) will be released by the Markit Economics today, which is expected to remain at 51.9.

Recent surge in EURUSD suggests that the pair is under bullish pressure and might continue to trade higher in the near term.

Technical Analysis

The EURUSD pair enjoyed a good bull run this past week, as the US dollar weakened a lot against most major currencies. There was a monster bearish trend line on the daily chart of the EURUSD pair, which acted as a major catalyst in the short term. It managed to settle above the 100-day simple moving average (SMA), which is a solid sign that the Euro bulls are here to stay. If the pair corrects lower from the current levels, then the broken trend line could provide support to the pair. Moreover, the 23.6% fib retracement level of the last leg from the 1.0522 low to 1.1287 high is also sitting around the same area along with the 100-day SMA.

eu

On the upside, a break above the recent high of 1.1287 might clear the way for more gains moving ahead.

The daily RSI is around the overbought level, suggesting a minor correction is possible.

Euro Area Markit PMI

Later during the London session, the Euro Area Manufacturing Purchasing Managers Index (PMI) highlighting business conditions in the manufacturing sector will be released by the Markit Economics. The forecast is of no change in April 2015.

Trade Idea

Buying dips in the EURUSD pair around the 100-day SMA looks good as long as it stays above the same.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.