A Weak Greenback Boosting the EUR/USD

EUR/USD Analysis 4 February 2019

EUR/USD Spot Price: 1.1454

Support - 1.1450, 1.140, 1.1300

Resistance - 1.1483, 1.1500, 1.1566

Trade-Ideas - The EUR/USD is Up

  • Position: Short
  • Entry Point: 1.1500
  • Stop Loss: 1.1550
  • Take Profit: 1.1500

I want to get short at 1.1500 with a stop loss at 1.1550 and a profit target of 1.1400.

2019-02-04-eurusd-trade-ideas

EUR/USD 240 min Chart - EUR/USD is Up

EUR/USD is Pushing Higher

The main news of the past week has really been the change in tone coming out of the FOMC.

At the last meeting of the Federal Reserve, Jerome Powell reinforced his new dovish tone, which meant that US interest rates might well be on hold in 2019.

That has seen the USD fall after the previous expectation was for 2-3 hikes in 2019.

The weak USD has been a boost for the majors including the EUR/USD which is now back looking to test the most recent highs around the 1.1500 area.

The week might well be off to a slow start thanks to the US watching the Superbowl on Sunday night and China being away for a holiday period.

Key Economic Data

There’s no major data points out of the Eurozone this week, so we will look closely at the US.

There are some tentative announcements for both GDP and Retail Sales, as well as a number of top-tier data points including ISM-manufacturing and building permits.

Technical Levels

The EUR/USD has been trading between 1.1300 and 1.1500 again, that will be the focus of the week.

Given price has bounced, I am expecting a test of the 1.1500 level and a potential retrace. Price has been holding this tight range for many months now and it will take a significant economic development to break the range.

2019-02-04-eurusd-key-levels

EUR/USD - Key Levels

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