EUR/USD long-term technical analysis

The “Intentional” weakening of U.S. dollar or U.S. stock market by President Trump to push the Fed for rate-cut has triggered bullish situation in EUR/USD. The pair sharply higher since beginning of year as U.S. dollar weaken. This year trend has turned bullish, and it might continue, especially when the Fed finally decide to start interest-rate cut.

Traders will avoid shorting EUR/USD, unless for short-term speculation.

New Month

Monthly chart

EUR/USD situation has changed after the bearish move below the upper green box area. It reached the green box area (1.0000 – 1.0350) and bounced from it. It seems a double bottom pattern has been formed with neckline at 1.1300 and broken to the upside this month. Technically, the pattern has upward potential to 1.3000. If the pair start a bearish correction toward 1.1300 then traders could use it as a chance to enter long positions.

Weekly chart

EUR/USD on the weekly chart is currently trading inside the 1.1300 – 1.1550 area. It might consolidate inside the area or immediately continue upward to target 1.1700, 1.1900 and 1.2080 next. Traders will maintain a bullish outlook and use each bearish correction in the pair as a chance to enter long positions.

Daily chart

EUR/USD bullish movement has strong momentum and not showing major weakness yet. A bearish correction with 20-30% move might happen, and it is chance for traders to enter more long positions. The same situation as the weekly chart, traders will expect the pair to target 1.1700, 1.1900 and 1.2080 next.

Trade plan

EUR/USD already in a bullish leg and the safest approach to the situation is buying when there is bearish correction. 1.1300 is the level to watch as support level when actual bearish correction happen. The pair could continue the bullish movement without any major bearish correction, so traders could keep watch, especially when the pair retracing 20-30% of the latest bullish leg.