Why the Buck may restore traders’ confidence this week

Forex Market Movers: Weekly Technical Outlook

Technical Developments to Watch:
 
* Bias determined by the relationship between price and various EMAs.  The following hierarchy determines bias (numbers represent how many EMAs the price closed the week above): 0 – Strongly Bearish, 1 – Slightly Bearish, 2 – Neutral, 3 – Slightly Bullish, 4 – Strongly Bullish.

** All data and comments in this report as of approximately 16:00GMT on Friday ** 

  

 EUR/USD

 
  • EUR/USD ticked below key 1.3500 support last week but…
  • …was unable to follow through, and Slow Stochastics are still oversold
  • Traders may be looking to fade rallies toward 1.3550-1.3600

The EUR/USD had an unusual week, bizarrely breaking below key support at 1.3500 on Tuesday before consolidating in the upper-1.3400s for the remainder of the week. From a technical perspective, the lack of a bearish continuation after breaking below support is a potential warning sign for sellers, as is the oversold Slow Stochastics. That said, the MACD still shows bearish momentum, so the market may look to fade any shallow bounces toward the 20-day EMA at 1.3550 or the 1.3600 handle later this week.
 

 
Source: FOREX.com
 
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