CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

EUR/USD technical analysis: range looking like bullish consolidation

EUR/USD has been without many directional cues lately, but overall the range appears to be favorable for the broader outlook; waiting on a breakout to confirm.

EUR/USD technical outlook

  • EUR/USD continues to be bound by a range
  • In context of the trend from March it could be bullish
  • Waiting on a breakout above $1.2011 to confirm

The EUR/USD has been a difficult place to be these days with no good directional cues to lean on. The range, though, building over the last few months should lead to a sizable move once broken. Looking at it in the context of the trend off the March low, it appears at some point it will break out to the top-side, but waiting for confirmation may be the prudent play instead of getting chopped up in the range.

A break above the $1.2011 level, the 1 September high, should have EUR/USD rolling higher. Looking to the left on the chart, there isn’t any strong levels to speak of until we get to the topping sequence in 2018 in the vicinity of $1.24/$1.25.

To turn the picture bearish, a break below the monthly low at $1.1602 should do the trick, but not too far below there the March spike-high could come in as support at $1.1495.

Neither the top or bottom side of the range look to be in danger of breaking at the moment with volatility having died down significantly since the days following the U.S. election. With that said, laying low and waiting for better clarity may be the most prudent move at this time.

Find out more about forex trading

EUR/USD daily chart

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.