EUR/USD: The Setup From The Daily, Weekly; Monthly Charts
EUR/USD daily: A bullish MACD crosses supports a tactical rally in spot EUR/USD to 1.0680. A rally to 1.08 can’t be completely ruled out in the near term. Provided 1.08 holds, we remain bearish given the weekly and monthly technical charts.
EUR/USD weekly: The bearish flag pattern that formed ending the week of Feb 10th and declining momentum is still guiding the downtrend. Support at 1.0490 is standing in the way of a greater decline. The bear flag pattern projects lower to 1.0025 with trend support at 1.0350. Spot closing below 1.0490 is further bearish.
EURUSD monthly: We review the monthly chart of EURUSD below because spot broke range support in 2016 indicating another leg lower this year. This chart makes parity look like it is just an arm’s length away.