Euro Post-CPI Plunge to Parity

Euro Technical Price Outlook: EUR/USD Short-Term Trading Levels

• euro Updated Technical Trading Levels – Daily & Intraday Charts
• EUR/USD bullishly reverses downtrend resistance on hot US CPI – risk for parity divergence
• Support 9991-1.0000, 9920s, 9901 (Critical) – Resistance 1.0175 (Key), 1.0260, 1.0352/85

Euro fell more than 1.5% from weekly high U.S. Dollar Today on the heels of a warmer than anticipated US inflation read with the EURUSD reversing sharply from key technical resistance. The pullback puts the parity back in focus and we are looking for a possible price inversion at a lower pullback. These are the update targets and invalidation levels that matter at EUR/USD Technical Price Chart. review my latest strategy webinar For an in-depth analysis of this Euro technical setup and more.

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Euro Price Chart – EUR/USD Daily

chart prepared by Michael Boutrostechnical strategist; EUR/USD on tradingview

Technical Outlook: in the last month euro short term Price Outlook We have noted that, “The divergence of the daily and weekly momentum highlights the risk of an immediate downtrend at the monthly close of these lows.” the euro fell fibonacci Support at 78.6% Retracement of Broader 2000 Rally 9901 With the price closing its yearly low at 9902 in early September before rebounding sharply higher. Recovery was halted on a comfortable downtrend resistance Around 61.8% retracement from August’s drop 1.0175At the beginning of the week. Today’s CPI print reversed this resistance area and price is now declining towards/parity from July lows – risk for price movement in this area.

Euro Price Chart – EUR/USD 240min

notes: A closer look at the Euro price action shows that the EUR/USD is trading within a range of short-term ascending hay-stalker The formation is moving up to the August/September lows and is limiting the upward parallel rally to the weekly open. Today’s reversal has already come down to the weekly and monthly opening objective – Preliminary help glanced at 9991-1.0000 Supported by lower parallel (currently ~9920s) and 99-handles. Ultimately, a break/close below this large figure would be required, marking the resumption of the broader downtrend/short for the next phase. Lower parallels with such a scenario and a dip towards the June 2000 high risk of. 9701,

ground level: euro An important resistance has reversed at the confluence and risk remains deep if it breaks below 1.0175. From a trading standpoint, look to reduce the share of short-exposure/lower protective stops on a stretch towards parity – rallies should be capped by monthly high-day closes (1.0121) if the price is moving lower at this stretch. Keep in mind that the FOMC interest rate decision is on tap next week and is likely to fuel additional volatility here – stay nimble in the release. review my latest euro Weekly Price Outlook For a closer look at the longer term EUR/USD technical trading levels.

For a full breakdown of Michael’s trading strategy, review him Foundations of Technical Analysis Series at bbuilding A Tearaiding sstrategy

Euro Trader Sentiment – ​​EUR/USD Price Chart

• summary of IG Client Sentiment Shows traders are net-long EUR/USD – Ratio is at +1.30 (56.5% of traders are long) – generally weak recession Reading
• Long positions 13.34% higher than yesterday and 19.16% lower than last week
• Short positions are 5.39% lower than yesterday and 25.05% higher from last week
• We generally take a contrarian approach to crowd sentiment, and the fact that traders are net-long suggests that the EUR/USD price may continue to decline. Traders are more net-long than yesterday but less net-long than last week. The combination of the current situation and recent changes gives us a . Another mixed EUR/USD trading bias from Rate Approach

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– written by Michael BoutrosTechnical Strategist with DailyFX

follow michael on twitter @MBForex