EUR/USD analysis: bulls need to break 1.1780 resistance
20:15, 5 October 2020
Last week the euro staged a notable upside recovery against the US dollar, as the pair started firm above the 1.1700 level.
EUR/USD technical analysis highlights that the pair needs to stabilise above 1.1780 in order to encourage a major push higher towards 1.1870.
EUR/USD medium-term price trend
The EUR/USD pair started to gain traction above 1.1700 last week, as the US Dollar Index gave back a significant portion of its recent gains.
EUR/USD analysis over the medium term shows that buyers need to anchor the price above 1.1780 to attract further technical buying interest.
The daily time frame shows that a large broadening wedge pattern is located between 1.1780 and 1.2100.
If bulls move the price above 1.1780, and perform a series of daily price closes above this area, then medium-term traders are likely to turn bullish again.
Technical analysis highlights the 1.1840 and 1.1870 levels as the key upside barriers prior to the technically important 1.1900 region.
Traders should note that traders are likely to turn bearish towards the EUR/USD this week if the price starts to hold below 1.1690.
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EUR/USD short-term price trend
EUR/USD technical analysis shows that the pair has a bearish bias over the short term, while the price trades under 1.1737.
EUR to USD analysis shows that a large inverted head-and-shoulders pattern has formed during the pair’s latest recovery.
A move above the 1.1770 level is required to activate the bullish price pattern, which holds a 160 point upside projection.
Traders should also be aware that the MACD indicator on the four-hour time frame shows bullish price divergence until 1.1800.
EUR/USD technical summary
EUR to USD analysis highlights that the pair could surge towards the 1.1900 area if the 1.1770 to 1.1780 resistance level is overcome this week.
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