EUR/USD: Buyers to target daily resistance?
|Europe’s single currency wrapped up the week on the ropes versus its US counterpart, shedding -0.2% and snapping a five-week bullish phase. Month to date, EUR/USD is up +1.7% and poised to end the month trimming a four-month losing streak.
Monthly/daily flow supports short-term bid
Bolstered by Friday’s rebound from trendline resistance-turned-support on the daily chart, taken from the high of $1.1139, as well as the immediate (daily) uptrend and the monthly timeframe showing no obvious resistance hindering buyers on the daily until reaching $1.0883 resistance (closely shadowed by another layer of daily resistance at $1.0920), buyers could be at the wheel this week. Nevertheless, a caveat to consider, albeit unlikely to influence a push higher this week, is that the monthly timeframe shows a clear long-term downtrend still in play.
H1 support on the radar
Interestingly, the technical position on the H1 timeframe reveals price ended the week testing a trendline resistance-turned-potential-support, etched from the high of $1.0885. Theoretically, given daily flow exhibiting scope to explore higher terrain in a trending market (and limited resistance impeding things on the monthly chart), this descending line may deliver a floor in early trading, with traders targeting daily resistance at $1.0883. Failure to rebound from the H1 line, however, H1 support between $1.0818 and $1.0822 may be tested and offer traders cheaper prices to bid from.
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