【Fundamental × Technical Feature 7】 Euro Dollar: Chart Analysis
【Feature: Fundamentals × Technicals】
Find the best approach to reading the market!
This time we approach the market from both fundamental and technical perspectives. We analyze major economies and major currency pairs from multiple angles to uncover hints for the optimal stance toward the market. In addition, we pick up notable individual stocks, cryptocurrencies, and commodities to give a comprehensive wrap-up of the 2020 market.
For fundamentals, we will have Yenzo analyze the outlook for stock indices and exchange rates, and for technicals, Koshi Yamanaka will provide a long-term view on major currency pairs, including professional forex analysis.
・⑤ Australian Dollar: Australia’s situation
・⑦ EUR/USD: Chart analysis ←This article ends here
・(11) AUD/USD: Chart analysis
・(12) Market outside currency pairs (Nasdaq & GAFA, cryptocurrencies & commodities)
※This article is a reprint/edit of FX攻略.com March 2021 issue. Please note that the market information stated in the text may differ from current market conditions.
YEN蔵 Profile
Former FX dealer at US-based Citibank and UK-based Standard Chartered Bank, and at foreign banks for over 20 years. Currently a top professional trader handling forex, Nikkei 225, Nikkei options, and individual stocks. President and CEO of ADVANCE Co., Ltd., which specializes in investment information distribution.
Newsletter:YEN蔵 Real Top Trading
Blog:YEN蔵’s FX Investing Techniques — Investing in the world with dollar, yen, euro, pound, and Australian dollar
Twitter:https://twitter.com/YENZOU
Koshi Yamanaka Profile
Ascendant Co., Ltd. Director. Joined Bank of America in 1982, became Vice President in 1989, Proprietary Manager in 1993. In 1999, Deputy Head of Forex Funds at Nikko Citigroup Trust Bank. Founded Ascendant in 2002.
Official Blog:Forex information delivery site provided by Ascendant / Koshi Yamanaka
Twitter:https://twitter.com/yasujiy
Will a long-term resistance level break to become support?
EUR/USD has risen as the euro strengthens, aided by the ongoing broad dollar weakness since the end of last year.
Breaking above the long-term resistance line suggests that a long-term trend reversal will be important to confirm going forward. When that time comes, pay attention to the target levels highlighted in Yamanaka’s analysis (note: this is in the purchaser-only section).
Looking at 2020, EUR/USD crossed above the long-term moving average in June after the COVID-19 shock, forming a golden cross, and since then has continued to rise, supported by key levels. Therefore, as long as there is no major reversal, a strategy of waiting for price to approach long-term moving averages or key levels and then buying on dips appears effective.
