Euro[1] has rallied nearly 1.4% after rebounding off key confluence support last week and the medium-term outlook remains weighted to the topside while above the April open. The advance is approaching some near-term resistance targets that may offer a pullback in price- here are the levels to know.
EUR/USD Daily Price Chart
Technical Outlook: In this week’s Technical Perspective[2], we highlighted a confluence support zone in EURUSD around ~1.2230 where basic channel support converges on the 61.8% extension of the decline off the yearly highs. Price posted an outside-day reversal off this level with the rally breaking back above the monthly open / opening-range highs. Daily resistance targets are eyed at the 2018 high-day close at 1.2709 backed by the January trendline resistance ~1.2440s- a breach above this levels would be needed to mark resumption of the broader uptrend. Key support now back at the low-day close at 1.2279.
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EUR/USD 120min Price Chart
Notes: A closer look at price action see’s EUR/USD trading within the confines of an ascending channel[5] formation extending off the monthly lows and keeps the immediate focus higher while channel support. Interim resistance targets stand at 1.2409 backed by the slope confluence around ~1.2440.
Interim support is eyed at 1.2346 backed by the monthly open at 1.2320- both areas of interest for exhaustion / long-entries. Near-term bullish invalidation rests with the monthly low-day reversal close at 1.2279- a break there would suggest the broader correction is still underway and risks a
