On Friday, the euro trades flat or up against the US dollar. Banks are closed worldwide due to Good Friday, so activity has been limited.
The single currency is supported by a weaker US dollar. The dollar was on the brink of losing a week on Friday as the massive new Federal Reserve lending program for small businesses and signs of a slowdown in coronavirus infections reduced demand for refuge.
EUR / USD trades 1.0944, up 0.0011 or + 0.10%. “data-reactid =” 14 “> At 13:13 GMT, the EUR / USD is exchanged 1.0944, up 0.0011 or + 0.10%.
Daily technical analysis
The main trend is downward according to the daily swing chart. A trade at 1.0768 will signal a resumption of the downtrend. The main trend will go up on a trade going through the last main peak at 1.1147.
The short-term range is 1.1147 to 1.0768. Its level of 50% or pivot at 1.0958 is resistance. This level stopped the rally on Thursday and Friday.
The main range is 1.0636 to 1.1147. Its retracement area from 1.0892 to 1.0831 is a new support. Maintaining above this zone contributes to generating a slight upward bias.
EUR / USD is currently trading in a triangle formation. The vertex of the triangle is a bearish Gann angle at 1.0947. The bottom of the triangle is 1.0916.
The triangle from 1.0916 to 1.0947 trades between a pair of levels of 50% at 1.0958 and 1.0892.
This type of chart pattern indicates impending volatility and a potential breakout.
A break above 1.0958 will indicate the presence of buyers. If this is capable of generating enough upward momentum, look for a push in the next Gann angle downward to 1.1047, followed by a major level of 50% at 1.1066.
A steady move under 1.0892 will signal the presence of sellers. This could trigger a breakthrough in the main level of Fibonacci at 1.0831. If that fails, look for the sale to extend into the bullish Gann angle at 1.0776, followed by the main low at 1.0768.
The chart template indicates that EUR / USD is configured for volatile breakout. He has arrived at the top of the triangle, so he must start moving. The key to success when negotiating an escape is a large volume.
Everyone sees the model, but not everyone sees the volume of buying or selling. Those who have the advantage, that’s why professionals win most of the time. Don’t play the breakthrough unless you buy or sell volume on your side.
article was originally published on FX Empire “data-reactid =” 41 “> This article was originally published on FX Empire