EUR/USD looks set for a test of a key long-term support level

EUR/USD looks set for a test of a key long-term support level

The pair continues to consolidate in 2018 trading, but nears a key trendline support level

If you look at the daily chart, it’s easy to see that EUR/USD has been consolidating for the most part in 2018. The range sits somewhere between 1.2165 and 1.2500 – a decent range but not one that offers a lot of insight as for which side of the battle between buyers and sellers are winning out.

But we could have that answer soon enough.

The pair is inching closer to a key long-term support level that stretches all the way back to April last year. The trendline held in November and December, before the pair jumped from below 1.2000 to test a high just above 1.2500.

As of today’s trading, that trendline support sits near 1.2250. Although the pair may still be in consolidation range even if it falls below that level, I’d argue that a psychological break of such a key support level should not be taken lightly.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.