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EUR/USD: Long Term Outlook

Published 05/03/2021, 01:53 AM
Updated 07/09/2023, 06:32 AM

The Euro to US Dollar (EUR/USD) exchange rate is one of the world’s most traded currency pairings.

The charts used are from TradingView and the prices are from FXCM.

Rejected from resistance

EUR/USD is moving still in a correction from the January high. From the low at the end of March, the price could recover but was rejected from resitance at around the 2018 March low.

EUR/USD Daily Chart

Resistance Levels: 1.2154 | 1.2349 | 1.2555
Support Levels: 1.2011 | 1.1952 | 1.1876

Forecast

The daily chart shows short-term strength but reversed at the resistance around 1.2100. After the recent upward movement, a correction is not unusual as part of the regular trend behavior. If the nearby supports hold, there could be another run to the 1.2100 level.

Conversely, a break below the 1.1900 area would put the March low in distress.

Recovery in the weekly chart discovers resistance around 1,2150

As a result of a progressive correction from the 2021 high, the EUR/USD fell to a local low at 1.1704. In the last few weeks, the price recovered up above the mark of the September 2020 high, but was rejected from the 1.2100 levels.

EUR/USD Weekly Chart

Resistance: 1.2243 | 1.2349 | 1.2555
Support: 1.2011 | 1.1876 | 1.1704

Forecast

On the weekly chart the focus is now on the current level of resistance at the 1.2100 price mark. As long as the support at around 1.1900 lasts, expectations remain positive. A drop below March low at 1.1704 could turn the neutral to positive outlook into negative.

Monthly chart within the range of the previous candle

Euro-Dollar forex pair shows a weak candlestick in March dropping below 1.1800 price levels. April was able to recover the losses and is now quoted above 1,2000.

EUR/USD Monthly Chart

Resistance Levels: 1.2150 | 1.2349 | 1.2555
Support: Levels: 1.1876 | 1.1569

Euro-Dollar Forecast

The monthly chart of EUR/USD shows new strength. A return above the April high at 1.2150 could turn the neutral outlook positive again. A drop below the 2019 high at 1.1569 would flip the neutral chart picture to negative.

Quarterly Chart shows upside potential

Euro-Dollar forex pair is moving in the range of the previous candlestick at prices around 1.2016.

EUR/USD Quarterly Chart

Resistance Levels: 1.2555
Support Levels: 1.1876 | 1.1569

EUR/USD Prediction

The quarterly chart of EUR/USD looks positive after breaking above the long term resistance line. A correction within the price range of the previous candle is underway, which may lead to sideways action. A drop below the 2019 high at 1.1569 could turn the neutral chart picture to negative.

Yearly chart (Historical chart)

If we look at the yearly chart of the EUR/USD currency pair, we see a long-term downtrend that originated at the 2008 high at 1.6038. This could be terminated, because in the last six years EUR/USD is moving sideways in a big trading range. The long term uptrend line is mayor support which was successfully tested with the 2020 low.

EUR/USD Yearly Chart

Resistance Levels: 1.2555
Support Levels: 1.1876 | 1.1570

EUR/USD Prediction

The yearly chart of EUR/USD looks neutral to slightly positive with strong support at 1.1570 (2019 high). We expect to see sideways action below the 2018 high at 1.2555.

*This price prediction is based on the data collected from various sources. This should not be considered as an investing parameter and user should do their own research before investing.

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