Jump to content

Euro-Outlook-EURUSD-EURGBP-Key-Levels-Omnicron-Fears-Rise


Recommended Posts

EUR/USD, EUR/GBP, TALKING POINTS:

  • EUR/USD faces pressure as fundamental factors weigh on risk sentiment
  • EUR/GBP battles it out at critical resistance
  • Can the Euro maintain resilience despite global lockdowns

Euro-Outlook-EURUSD-EURGBP-Key-Levels-Omnicron-Fears-Rise

NEW COVID RESTRICTIONS WEIGH ON THE EURO

A surge in the number of Covid-19 cases has placed governments under additional pressure as the Omnicron variant continues to spread at a rapid pace. With policy makers now implementing restrictions in an effort to reduce the number of infections, the ability for the Euro to maintain resilience in 2022 could remain a contentious issue

Visit the DailyFX Educational Center to discover why news events are Key to Forex Fundamental Analysis

As rising geopolitical risks and concerns surrounding progressive economic growth continues to weigh on risk sentiment, inflation and increasing government could provide an additional catalyst for price action for the Euro’s imminent move.

 

EUR/USD TECHNICAL LEVELS

Since 2018, the EUR/USD has been trading in a key area of confluence between the 76.4% and 61.8% retracement of the medium-term Fibonacci. This relatively tight span containing the two above-mentioned Fibonacci levels has formed clear areas of support and resistance. However, after breaking through the 61.8% level (1.11846), price action has favored the bulls, with the 50% retracement of the medium-term move now forming a level of support at 1.14407.

EUR/GBP TECHNICAL LEVELS

At the time of writing, EUR/GBP has temporarily managed to drive prices back above the 50-day moving average (Moving Average) at 0.85, currently providing support for the short-term move.

Although the downward trajectory has persisted since March last year, a break above trendline resistance has enabled bulls to retest the critical resistance of 0.854, the 14.4% Fibonacci retracement level of the 2021

 

EUR/GBP Daily Chart

Euro-Outlook-EURUSD-EURGBP-Key-Levels-Omnicron-Fears-Rise

 

Written by Tammy Da Costa, Analyst for DailyFX.com. 20th December 2021

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,112
    • Total Posts
      88,194
    • Total Members
      69,106
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    CJ-TradingFloor
    Joined 05/10/22 10:26
  • Posts

    • Hi What are the ways to deal shares with IG and what are the commission/costs for share dealing.   Thanks
    • Hi @Ptuh Welcome to IG community. What type of trader are you? Scapler, day trader, swing trader, position trader, algorithmic trader or event-driven trader? To answer your question, you can have a look at this member's recent posts on trading strategies: Top 5 Intraday trading strategy for financial freedom The Fibonacci MACD Trading Strategy Another source that can assist with your trading strategy is this article by our Senior Market Analyst: How to trade SA40 Index   All the best, OfentseIG
    • CSX Corporation, Elliott Wave Technical Analysis CSX Corporation, (CSX:NASDAQ): Daily Chart, October 5 2022,  CSX Stock Market Analysis:Moving as expected, at this point we are looking to see how wave{iv} is going to unfold. Given the fact that wave {ii} was sharp I will be looking for more of asideways correction. CSX Elliott Wave count: {iv} of C CSX Technical Indicators:We are below all averages CSX Trading Strategy: Looking to short on wave {iv} ideally the 20EMA(red line) will also turninto resistance. TradingLounge Analyst: Alessio Barretta       CSX Corporation, CSX: 4-hour Chart, October 5 2022 CSX Corporation, Elliott Wave Technical Analysis CSX Stock Market Analysis: From this lower timeframe view it appears we have just started wave(a) of {c} and many times after a sharp wave (a) we fall into a sideways correction. CSX Elliott Wave count: (a) of {iv}. CSX Technical Indicators:We have just touch the 20EMA where we could start to pullback from. CSX Trading Strategy: Looking for shorts from a significant Fibonacci level.
×
×
  • Create New...