EURUSD Archives - FaithMight

November 15, 2022November 15, 2022

EURUSD Bounces From 19-Year Low

In the year 2000, EURUSD had its major support level at 0.82258. In July 2001, a rally began that lasted for years and this rally took EURUSD to an all-time high of 1.60932. This mark was reached in April 2008. Since this high, it’s been lower lows and lower highs for the EURUSD pair.

In September 2022, EURUSD reached 0.94990 which stands as a 19-year low for the currency pair. After this low, the pair saw a rally that bounced the price upwards to 1.04067 where it currently stands.

However, despite the current bull run, our analysts think that the bears are still in control and the US Dollar will still gain against the Euro. Our analysts forecast EURUSD falling below the 19-year low of 0.94990 in the coming weeks. Though we have RSI indicating that price has been oversold twice, in 2015 & in 2022, on the monthly chart, it is not certain that this indication will lead to a rally for the EURUSD.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get currencies in your portfolio? Schedule a meeting with us here

July 14, 2022July 14, 2022

1 Euro Equals 1 Dollar, First Time in 20years.

The appreciation of the dollar against other currencies continues as a two decades record has been broken. From the time EURUSD has been listed on trading-view in May 1993, the lowest price of EURUSD stands at 0.82623. in November 2000. That is to say, the US dollar gained more than the EUR since its listing on trading-view. For another 8 years, the EURUSD appreciated to an all-time high at 1.6000 specifically in April 2008.

Since the appreciation of the EURUSD to the all-time high at 1.60000, on the monthly chart, there have been lower highs and lower lows. This movement signifies a downtrend. For the first time in 20 years, the EURSD reached a par as 1 EUR equals 1 Dollar on the 12th July, 2022. in the next few months, Euro might bounce from the current support at 0.99960 to a new resistance at 1.07657. Currently, the dollar looks strong.

May 23, 2022May 27, 2022

EURUSD Rebounds

Since December 2020, EURUSD has been on a bearish trend. Each time the pair tries to gather momentum in the upward direction, the bears counteract the movement and the price heads back downwards. Since Q4 2020, $EURUSD has lost over 1900 pips.

Since the beginning of 2022, the strength of the bulls have been minimal as the price has been pushed downwards in favor of the US Dollar. The war between Russia and Ukraine has led to Russia cutting the gas supply to some European countries and this may be a contributing factor to the weakened Euro. More so, the inflation hitting economies worldwide may also be a reason why major currencies can’t seem to rise against the US Dollar.

About four weeks ago, EURUSD fell below 1.0600 for the first time in five years. On the 13th of May, 2022, the price of EURUSD was as low as 1.0350. However, in the last two weeks, the Euro has appreciated against the US Dollar. Price has been able to rally to 1.0680 which is over 300 pips gain in the last week. In the coming weeks, the bears might push price lower again below 1.0470.

April 20, 2022April 20, 2022

The USD Continues Gaining Against The EUR

EURUSD opened in the year 2022 at 1.13695. All through 2021, EURUSD was majorly bearish with 8 out of 12 of the monthly candlesticks being bearish. The pair continued its bearish run as it entered 2022 and found support at 1.07574.

Despite the continuous fall, there have been a few times when the bulls tried to trigger a rally. However, each time this happens, the bears overpower the bulls and send the price further downwards. On the 4-Hour timeframe, the price has indicated oversold positions since the first week of April. Despite this indication, the bears are still dipping the price of EURUSD.

There are indications that the price could rally, against the current odds, to 1.11542 as the price recovers in the coming weeks. Currently, the price has crossed over to the upper region of the Bollinger Bands which could be an indication of the next bullish run.

March 21, 2022March 21, 2022

USD TO GAIN MOMENTUM AGAINST THE EURO

EURUSD opened in 2022 at 1.13685. The bulls attempted a rally but the upward movement wasn’t a strong one and in the process, a double top was formed. This double top happened between January 2022 and February 2022 and during this period, the price hit the year’s high at 1.14965. After the double top, $EURUSD dipped to 1.08062, about 700pips loss from the year’s high.

This month, EURUSD rebounded and made its way to January’s support at 1.11218. This upward movement has continued and the price has reached a monthly high of 1.11395 as of 17/03/2022. As suspected, this rebound is not evolving into a full-blown bullish rally as $EURUSD has begun to lose its bullish momentum. The price is currently falling even though there are no indications on the RSI that the price has been overbought on the 4-hour timeframe. If the price closes in the lower region of the Bollinger Bands, this might lead to a continued bearish run.

As the price continues its downward trend, technical indications show that the bears might be more active as the price might reach 1.08236 which may serve as the major support level for the first half of the year 2022.

March 7, 2022March 11, 2022

EURUSD Experiences Worst Fall Since Mid-2020

The EURUSD pair opened for the year 2022 at 1.13832. The price rallied for some time until it surpassed the year’s opening price. In the same month of January, the rally halted and the price took a bearish run below the year’s opening price. On the last day of January, the price was 1.12376.

In the first few days in February 2022, EURUSD rallied to the year’s resistance at 1.14949. However, since February 10, 2022, price has been falling reaching a new low on Monday, 7 March 2022, at 1.08112. This new low was last reached on the 18th of May 2020. Looking at EURUSD on the monthly chart, between mid last year and now, the pair has lost about 140 pips.

Indications from RSI showed oversold positions in November 2021 and December 2021. On the weekly chart between Week 3 and Week 4 in February 2022, there was a gap down. Price closed in Week 3 at 1.12711 and opened in Week 4 at 1.11178.

In the coming weeks, the gap down might be filled as EUR gains against the USD and the price could go above 1.12062. Price is currently at the lower region of the Bollinger Bands but we should watch out for the bulls.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks and currencies in your portfolio? Schedule a meeting with us here.

August 25, 2021August 25, 2021

EURUSD Tries to Break Support Level

In May 2018, a EURUSD dip started as the price fell below 1.16997 and went as low as 1.06394., this was over 1000pips. Later in 2020, The EURUSD bulls pushed the price upward to a new resistance at 1.16997 in July 2020, and in August 2020 it stood as support. The EUR has gained so much against the dollar since after the ease of lockdown in 2020.

In April 2021, EURUSD had a bullish run from a support level at 1.7032 to 1,22651 in the last trading week in May. The bears took over and pushed the price to the support level at 1.7032. There was a fake-out to the downside, price has tried to retrace with three bullish candlesticks in the last 4 trading days. At the beginning of August 2020, the bulls tried to break the minor resistance level at 1.19019 to the upside, but instead, the bears pushed the price lower. As we see the bull power gaining momentum in the past 3 trading days, we might see the price reach the next resistance level at 1.19019. A breakout to the upside might push the price towards the major resistance level at 1.23465.

Between June and July, RSI has revealed 2 oversold positions. This could be an indication of a possible reversal.

February 27, 2020February 27, 2020

ON THE AIR with FUTURES with Ben Lichtenstein

Last week, I was back on the air with Futures with Ben Lichtenstein. Since we are still in the new year season, it was a great segment that they produced as a trip around the world in currencies. Starting with the U.S. dollar, Ben and I talked about the fundamentals that are really driving currency flows in the market right now.

This morning, traders were greeted by news that the EU and UK trade talks are deteriorating. I actually mentioned this fundamental risk last week in my segment with Ben. Check out more of my thoughts on all the major currencies below. My accuracy coming to fruition this week is even amazing to me 🙂

Enjoy the show!

Lydia Idem on TDA NETWORK — Click to watch!

If you are interested in a primer on how to read charts, please check out the new course, CHARTS101.

December 29, 2019December 29, 2019

ON THE AIR with Yahoo! Finance

I had the pleasure of speaking with the guys at Yahoo! Finance this past Friday. It was my first in studio appearance! Even though it was simply a live feed into the NYC HQ studio, it was very cool to visit the Yahoo! campus and record from a legit television studio.

As I mentioned on the show, I do believe the U.S. dollar can fall more from here as risk appetite continues to run through the U.S. equity markets. The $SPX continues to make all-time highs, making any downturn simply a correction at this point. Brexit continues to dominate sterling news despite the Parliament-majority outcome from this month’s general election in the UK. As such, watch the GBP continue to sell-off as the market has new concerns with HOW the UK leaves the EU in 2020. I also opined on how China and the U.S. election cycle could play out in markets and what traders and market participants need to watch for.

I had a good time at Yahoo. I got to take my eldest with me as my social media assistant and my producer treated us to a campus tour and lunch at the amazing Yahoo cafeteria. I look forward to speaking with the guys at The Final Round again in 2020.

Watch my full interview below. Enjoy!

Highlight: "A lot of what we're seeing with the dollar has been first interest rate expectations from the Fed," @FMCapitalGrp CIO @faithmight says. "Now what we're seeing is risk." Also talks about Brexit's impact on the global economy. pic.twitter.com/328vssmqtu
— Yahoo Finance (@YahooFinance) December 27, 2019

July 31, 2019July 31, 2019

Extreme Positions

Too many shorts on the GBP pic.twitter.com/S38vL14VEC
— Walle Smith (@walesmit) July 30, 2019

Check out the positioning in the forex market as we were headed into today’s FOMC meeting. Though Walle Smith points out here the crowding into GBP shorts, look at the USD positioning last week as reported by the CFTC. In light of today’s 25bps rate cut, 2 dissenting FOMC members who wanted to hold on interest rates, and verbal confirmation during the press conference from Federal Reserve Governor Powell that there will be no cycle of interest rate cuts, the positioning in the market is not at all stretched. With all of that just happening, there was still room in the long USD trade. Which is very interesting when you look at the trends against the other major world currencies. The market has significant room before it even is considered crowded with long USD positions.

My take is that the Fed has pretty much given markets the green light with no real reason to sell the USD. And it is likely that the USD continues to move higher still.