EUR/USD 1.1000 Defense builds bull flag setup
EUR/USD put in a rate cut rally this week, surging after the European Central Bank loosened rates again. There was perhaps more input from the technical side, however, as there was a defense of the 1.1000 handle ahead of that rate decision, followed by a strong move thereafter. If we compare the US and European economies, it doesn't seem as though Europe is in exceptionally better shape than the US and as a case in point, the ECB has already begun their rate cutting cycle while the Fed is nearing what's highly expected to be their first cut of this cycle.
Nonetheless, price is what hits stops and can cause margin calls so the fact that there remains a bullish potential backdrop is notable. For the flag formation to trigger bulls will need to push through the topside of the channel and there's also the 1.1140 level that's of interest as it's near confluent with that resistance for next week. Above that, the current 2024 high plots at 1.1200, and the 2023 high at 1.1275.
On the the other side, for bears to take charge they're going to need to deal with the 1.1000 level, and below that an important Fibonacci level at 1.0943. A closed weekly bar through that latter price for next week would give the appearance of longer-term range continuation in the pair. - js
Nonetheless, price is what hits stops and can cause margin calls so the fact that there remains a bullish potential backdrop is notable. For the flag formation to trigger bulls will need to push through the topside of the channel and there's also the 1.1140 level that's of interest as it's near confluent with that resistance for next week. Above that, the current 2024 high plots at 1.1200, and the 2023 high at 1.1275.
On the the other side, for bears to take charge they're going to need to deal with the 1.1000 level, and below that an important Fibonacci level at 1.0943. A closed weekly bar through that latter price for next week would give the appearance of longer-term range continuation in the pair. - js
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