EUR/USD Looking at Key 1.18 Level on Price Charts

Nigel Frith
1 Euro and 1 GBP Coins next to eachother

The euro has had its fair share of problems on the price charts in recent weeks – and the overall picture for the currency appears to suggest that a downtrend is setting in. The currency saw its highest point in 2020 as recently as August, when it reached the 1.2011 point on the price charts. However, strategists are now predicting that the most likely outcome for the currency going forward appears to be a downward one. The pair’s closer timeframe moving averages are currently hovering well under the crucial one, which is the 200-day version.

Other indicators of momentum, such as the moving average convergence/divergence tracker, are also showing signs of underlying bearish bias. According to analysts, a key figure for the currency is likely to be the 1.18 point. This is an important position for the currency because it is a whole number, and therefore could have striking effects on trade behaviour and crowd movement. If the euro cannot reach this key point in its dollar pair at some stage soon, it is considered likely by analysts that the next stage for the currency could be 1.1626. From there, however, it could even go below 1.15. Currently, though, the currency pair is just above the 1.17 level. It managed to surge beyond this level following speculation that US President Donald Trump, who is currently being treated in hospital for coronavirus, may be about to be discharged.

Moving away from the price charts and headline news, both of these currencies have a busy week coming up on the economic calendar. On Monday, there will be a speech from the President of the Deutsche Bundesbank, Jens Weidmann. This will take place at 12pm GMT. A range of important data releases will come out of the US from 1:45pm onwards. A purchasing managers’ index from Markit for September will be released then, and is due to show no change from its previous position of 54.6. An employment index release for September from ISM will be out at 2pm GMT. This is due to show a change from 47.9 to 58.1. Looking ahead to tomorrow, a meeting of European finance ministers is set to take place all day.

However, the main event in Europe will be a speech from Christine Lagarde, who serves as the President of the European Central Bank. This is due to take place at 1pm GMT. It will be followed at 2:40pm GMT by a speech from Jerome Powell, who heads up the Federal Reserve in the US – making Tuesday a key day for EUR/USD monetary policy watchers. However, attention will flick back to Europe later in the day when Philip R. Lane, who serves on the Executive Board of the European Central Bank, makes a speech. This is due to take place at 3:30pm GMT.


Nigel Frith

Latest news

iEarn Bot – One of the Largest Scams to Date Unravels
Thousands left with huge losses after investing in iEarn Bot scam. Read more
Binance Pulls the Plug on UK Cash Deposits – and Withdrawals
Crypto exchange Binance stops accepting deposits made in British pounds. Read more

Safest Forex Brokers 2023

Broker Info Best In Customer Satisfaction Score
#1 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 73 % of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#5 Plus500 Logo79 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
5

    Forex Fraud Certified Brokers

    IQ Option Logo
    City Index Logo
    LegacyFX Small Logo
    ATFX Logo
    skilling logo
    BlackBull Markets Logo
    IC Markets Logo
    HYCM Logo
    OctaFX Logo
    AvaTrade logo
    Forex.com Logo
    XM Logo
    Exness Small Logo
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.