ICM Technical Analysis : EUR/USD 17 March 2020

ICM Technical Analysis : EURUSD – 17 March 2020

Technically, EUR/USD remains within an interesting consolidation between 1.1223 and 1.1045 on the H4 scale. The upper boundary contains January’s opening level at 1.1222, a 38.2% Fibonacci resistance at 1.1223 and the 1.12 handle. The lower boundary, on the other hand, has March’s opening level stationed at 1.1045, a 61.8% Fibonacci support at 1.1053, February’s opening level at 1.1094 and the round number 1.11. Outside of the current range, 1.13 stands nearby, as does the key figure 1.10.

Technical research based on the weekly timeframe had the 2019 yearly opening level from 1.1445 elbow its way back into the spotlight last week, with bears reasserting their dominance and snapping a three-week winning streak. Down more than 180 points, price dipped its toes back within a descending channel formation (1.1569/1.1215), with price currently retesting the upper channel boundary. Downside support from this point has the 2016 yearly opening level at 1.0873 in view, in line with the primary trend, drifting south since 2018.

Focus on the daily timeframe remains on support at 1.1075 and the 200-day SMA (orange – 1.1099), followed by another layer of support at 1.0995. To the upside, resistance is seen at 1.1240.

Areas of consideration:

Range traders may attempt to fade the outer limits of the current H4 consolidation today, likely employing candlestick analysis as a means of additional confirmation, and targeting the opposing edge.

A break of 1.1222 may prompt breakout buying to 1.13; conservative traders will likely want a retest to form before committing. A violation of 1.1045, nonetheless, will likely see breakout sellers target 1.10, which by and of itself, is a widely watched figure and echoes robust support.

Disclaimer: The information contained in this material is intended for general advice only.