EUR/USD Continues to Climb towards 1.1100

Joe Perry
By :  ,  US Market Analyst

As my colleague Fawad wrote last week,  EUR/USD is at a pivotal point.  On a day when the economic calendar is light, the pair remained stuck near 1.1050.  Headlines rule the day, and when news was released that Germany is mulling the creation of a shadow budget to increase public investment beyond restrictions of national debt rules if the outlook warrants, EUR/USD pushed from 1.1030 to 1.1057.  It now looks like there is plenty of room to move up towards 1.1100. 

EUR/USD remains in a long-term descending triangle, however on September 3rd, the pair created a hammer at trendline support on a daily timeframe.  Although not textbook, with the bullish candle on the 4th one can argue this is a morning star candlestick formation, which is a powerful 3 candle reversal signal.  Although there is a lot of time left in the day, if the pair closed above 1.1057 a bullish engulfing candle will be formed, which suggests the pair could move up to 1.1100, which is trendline resistance and the 38.2% retracement level from the July 25th high to the Sept 3rd lows.  Above that, there is horizontal resistance and the 50% retracement level from the same time period near 1.1170. Support remain at September 3rd lows, at 1.0925.

Market chart demonstrating EURUSD Continues To Climb Towards 11100. Published in Sept 2019 by FOREX.com

Source:  Tradingview, FOREX.com

On a light data day such as today, always be on the lookout for headlines regarding Brexit and ECB.  Although there have been several Brexit headlines today, none have noticeably affected EUR/USD.  Also, Mario Draghi’s last meeting as ECB President is Thursday.  It’s worth watching for headlines regarding the upcoming meeting.


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