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

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

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

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices 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.